The federal government has distanced itself from reports claiming it’s currently planning to increase the price of Premium Motor Spirit (PMS), also known as petrol.
According to Premium Times, in a statement issued on Sunday, April 9, 2017, the Petroleum Products Pricing Regulatory Agency (PPPRA) maintains that there is no plan to increase the price of petrol.
The reaction is coming from agency as a result of speculations that there might be an upward review in the price of the product due to an increament in the bridging allowance to transporters of the product.
Tellforceblog understands that the rumour about the price hike was triggered by an earlier declaration by the group managing director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, that the bridging allowance to transporters of PMS had been increased from N6.20 to N7.20.
The latest development brought unrest into the minds of the consumers, with many thinking that there could be a hike in the pump price of PMS.
The PPPRA however shed more light on the issue, that the N1 per litre transporters’ bridging fee increament for PMS is not enough to have any effect on the current pricing template for the commodity.
Victor Shidok, who is the acting executive secretary of the PPPRA, stated that the speculation as mere rumour.
According to Shidok, the template for PMS was not touched by the increase in transporters’ bridging allowance.
The Ag. Executive Secretary said: “Following the news making rounds of an imminent increase in the pump price of PMS by N1/litre as a result of a corresponding increase in the Petroleum Equalisation Fund’s bridging allowance, the PPPRA wishes to state that there is no truth whatsoever in the claim.
“As the agency of government responsible for products’ price adjustment, we wish to categorically state that the price cap for PMS remains N145/litre, and that the recent additional N1/litre transporters’ bridging rate shall not in any way affect the PPPRA template.
“The PPPRA uses this opportunity to again assure all stakeholders and members of the public of uninterrupted products’ supply and distribution, pursuant to the overall goal of facilitating a vibrant and robust downstream oil and gas sub-sector.”
Meanwhile in another report, Tellforceblog reported that the price of rice is expected to drop to N6000 in the next six months, based on the statement credited to Alhaji Aminu Goronyo, who is the president of Rice Farmers Association of Nigeria (RIFAN).
Also read: Price of rice will drop to ₦6000 per bag.
Goronyo also noted that more farmers are now taking advantage of the Central Bank of Nigeria (CBN)’s Anchor Borrowers Programme and that his association was marshalling more farmers to partake.
“We are going to assist the Federal Government to produce more than enough rice. It is part of the plan to bring down the price of rice. There are several efforts that we are making to see that in no distant time, this price of rice will come down for Nigerians to have access to affordable milled rice.
“The strategy entails expansion of areas under rain fed farming and irrigation, reduction of post-harvest losses through mechanisation, improved seed production systems and market development improvement among others,” He said.
The RIFAN president said he expects the price will continue to drop in order to make it more affordable to Nigerians.
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