A socio-cultural group, Yoruba Stakeholders Assembly, has reacted to the recent misinformation surrounding the pricing of Premium Motor Spirit (PMS) in the country, commending the efforts of the Nigerian National Petroluem Company at stabilizing the price.
The Group, which is committed to transparency, accountability and fostering an informed citizenry in Nigeria, noted that it is essential to separate fact from fiction, especially when the livelihoods of ordinary Nigerians are at stake.
Its reaction was contained in a press statement signed by its Convener, Comrade Dayo Olawale, and made available to journalists on Thursday.
Comrade Olawale admitted that the pricing mechanism for PMS has undergone a significant transformation, evolving into a deregulated market where market forces predominantly dictate prices, adding that “This framework is designed to create a competitive environment that benefits consumers while fostering a healthier economic climate.”
It clarified that neither the government nor the Nigerian National Petroleum Company Limited (NNPC Ltd) possesses the authority to fix the price of PMS, urging all Nigerians to remain vigilant, seek verifiable facts, and engage in productive discussions that ultimately contribute to a more sustainable future for our nation.
The Group noted that in a deregulated market, the price of PMS is influenced by multiple factors, including supply and demand, global oil prices, and operational costs related to refining and distribution, saying “the NNPC Ltd has actively engaged with private entities to ensure a steady supply of fuel, thus promoting competition and potentially lowering prices.”
Speaking further on the latest discourse on how NNPC Ltd procured fuel from Dangote Refinery at a cost of N898 per liter, Comrade Olawale noted that “It is critical to emphasize that NNPC Ltd’s engagement with Dangote was aimed exclusively at ensuring that Nigerians have access to fuel at a fair price. This negotiation process underscores NNPC Ltd’s commitment to representing the interests of the Nigerian populace.”
Olawale explained that for the past year, the market price of petrol has hovered around N1,100 per liter but through the proactive measures undertaken by NNPC Ltd, ordinary Nigerians have been shielded from the soaring prices, benefiting from a subsidized rate of N620 per liter.
“This has been possible due to NNPC Ltd covering the shortfall—an effort that, while noble, has become an unsustainable endeavor. This cry for sustainability reflects NNPC Ltd’s commitment to balancing providing affordable fuel and maintaining fiscal responsibility.”
Addressing the misconception that the government dictated the pricing structure for Dangote’s fuel, the statement said: “In actuality, it is Dangote who independently decided to sell his refined fuel to NNPC Ltd at N898 per liter, adding that “Initial negotiations revealed Dangote’s proposed price to be well over N900 per liter, which NNPC Ltd successfully negotiated down to a more manageable rate for the benefit of the Nigerian consumer.”
In addition, Comrade Olawale noted that NNPC Ltd’s directive to Dangote to also sell his fuel to other marketers, under a willing buyer-willing seller basis as outlined in the Petroleum Industry Act (PIA), reinforces the commitment to creating a competitive market.
“This action aims to ensure that pricing remains fair, accessible, and transparent—principles that should govern all transactions in the energy sector,” he said.
While clarifying the misunderstandings regarding pricing changes, the Group noted that the narrative that suggests government manipulation of fuel prices is not grounded in reality, saying that “The truth lies in the fact that the price negotiated by NNPC Ltd is a direct result of market influences, competitive negotiations, and the pressing need to ensure fair access to fuel for all Nigerians.”
“Recent statements suggesting that Dangote intends to sell fuel to Nigerians at prices significantly lower than market rates, only for the government to intervene, are grossly misinformed,” the Group added.
The group, however, called on Nigerians and consumers to remain wise and discerning as the populace navigate these turbulent waters of economic discourse and fuel pricing, “with a view to collectively address the challenges we face with integrity and transparency.”
