NNPC reaffirms PMS prices set by market, not government; consumers benefit from discounts.
The Nigerian National Petroleum Company Limited (NNPC Ltd) has, remarking on fuel prices, clarified that the government no longer sets the price of PMS, also known as Premium Motor Spirit (PMS), in line with the Petroleum Industry Act (PIA).
The clarification, revealed earlier Monday, comes as public interest rises regarding surging fuel prices following the release of the company’s projected prices of Premium Motor Spirit for September 2024.
NNPC confirms fuel prices are determined by stakeholders, not the government
In the official statement, NNPC Ltd emphasized that PMS prices are now determined through negotiations between the relevant stakeholders, with no direct involvement from the government.
“In line with the provisions of the Petroleum Industry Act, PMS prices are not set by the government but negotiated directly between parties on an arm’s length basis,” NNPC stated.
This move is part of the broader reforms introduced by the PIA, which seeks to ensure transparency and competition within Nigeria’s petroleum sector.
Also Read: BREAKING: NNPC Ltd Announces Estimated Petrol Prices for September 2024
As part of these reforms, NNPC has begun paying for fuel sourced from the Dangote Refinery in U.S. dollars, although payments in naira will commence from October 1, 2024.
NNPC reassured the public that any discounts provided by the Dangote Refinery would be fully passed on to consumers, a measure intended to cushion the potential impact of fluctuating prices of fuel.
This clarification underscores the company’s commitment to maintaining transparency in fuel pricing under the PIA framework.
The News Summaries:
- NNPC clarifies government no longer sets fuel prices under PIA.
- PMS prices now negotiated between stakeholders, says NNPC under PIA.
- NNPC pays Dangote Refinery in USD for September 2024 fuel.
