Yoruba stakeholders make clarifications on fuel prices controversy

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The Yoruba Stakeholders Assembly has provided some clarifications regarding the Premium Motor Spirit (PMS) pump price and the related dispute.

The Yoruba Stakeholders Assembly, a dedicated advocate for openness and consciousness in Nigeria, “seeks to address the recent misinformation surrounding the pricing of Premium Motor Spirit (PMS) in the country,” according to a statement released by the group and signed by Comrade Dayo Olawale, its convener.

It stated It is critical to distinguish fact from fiction in this age of widespread conjecture and disinformation, particularly when the livelihoods of common Nigerians are at risk.

It said the statement should serve as a reminder that informed citizens are the foundation of a successful democracy, stating that, “A nuanced understanding of market dynamics, governmental roles, and inter-business negotiations is essential in fostering a culture of accountability and transparency. We urge all Nigerians to remain vigilant, seek verifiable facts, and engage in productive discussions that ultimately contribute to a more sustainable future for our nation. “

Proving that the government has no control over PMS pricing, the group said, “Contrary to popular belief, it is imperative to clarify that neither the government nor the Nigerian National Petroleum Company Limited (NNPC Ltd) possesses the authority to fix the price of PMS. The pricing mechanism for PMS has undergone a significant transformation, evolving into a deregulated market where market forces predominantly dictate prices. This framework is designed to create a competitive environment that benefits consumers while fostering a healthier economic climate.

It went on to say that market forces are at work in the current scenario.

According to the group, “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. The NNPC Ltd has actively engaged with private entities to ensure a steady supply of fuel, thus promoting competition and potentially lowering prices.”

Speaking about the reality of fuel acquisition costs, the statement revealed that NNPC Ltd. paid N898 per litre to purchase fuel from Dangote Refinery, as revealed by recent conversations. “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.

According to the group, the market price of gasoline has been roughly N1,100 per litre for the past year. This indicates stable and inexpensive fuel prices.

“However, thanks to the proactive measures undertaken by NNPC Ltd, ordinary Nigerians have been shielded from these 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.

“There is a misconception that the government dictated the pricing structure for Dangote’s fuel. In actuality, it is Dangote who independently decided to sell his refined fuel to NNPC Ltd at N898 per liter. 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.

“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.

“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 narrative that suggests government manipulation of fuel prices is not grounded in reality. 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.

“In conclusion, as we navigate these turbulent waters of economic discourse and fuel pricing, we urge all Nigerians to remain wise and discerning consumers of information. It is vital for the public discourse to be anchored in facts rather than fiction so that we, as a nation, can collectively address the challenges we face with integrity and transparency.

“The Yoruba Stakeholders Assembly is committed to fostering an informed citizenry—one that propels Nigeria towards a sustainable future, grounded in facts. “

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