Clarifications Issued By Yoruba Elders On Recent Fuel Price Debate

Clarifications Issued By Yoruba Elders On Recent Fuel Price Debate

The Yoruba Stakeholders Assembly has issued clarifications regarding the controversy surrounding the pump price of Premium Motor Spirit (PMS). In a statement by its convener, Comrade Dayo Olawale, the Assembly emphasized its commitment to transparency and public awareness amidst the recent misinformation about PMS pricing in Nigeria……CONTINUE READING 

The Assembly stressed the importance of distinguishing fact from fiction, especially when it affects the livelihoods of ordinary Nigerians. It highlighted that a deep understanding of market dynamics, government roles, and business negotiations is essential for promoting accountability and transparency. Citizens are encouraged to seek verifiable information and engage in constructive discussions to support a more sustainable future for the country.

The group clarified that there is no government control over PMS pricing. Contrary to popular belief, neither the government nor the Nigerian National Petroleum Company Limited (NNPC Ltd) has the authority to set PMS prices. The market has transitioned to a deregulated framework where prices are determined by market forces, including supply and demand, global oil prices, and refining and distribution costs.

The Assembly noted that the NNPC Ltd’s engagement with private entities, such as Dangote Refinery, aims to ensure a steady fuel supply and promote competition. They revealed that NNPC Ltd procured fuel from Dangote Refinery at N898 per liter, a reduction from Dangote’s initial price of over N900 per liter. This negotiation underscores NNPC Ltd’s commitment to securing fair fuel prices for Nigerians.

Despite this, the market price of petrol has remained around N1,100 per liter over the past year. NNPC Ltd has been subsidizing the price to N620 per liter, a measure that has become financially unsustainable. The Assembly noted that the government did not dictate the price structure for Dangote’s fuel; rather, Dangote set his own price, and NNPC Ltd negotiated to lower it.

The statement also refuted claims that Dangote intends to sell fuel at significantly lower prices and that government intervention is the cause of pricing issues. It emphasized that the actual price is a result of market dynamics and competitive negotiations.

In conclusion, the Yoruba Stakeholders Assembly called for a fact-based public discourse on fuel pricing and encouraged Nigerians to stay informed and discerning. The Assembly remains dedicated to fostering an informed citizenry and supporting Nigeria’s path to a sustainable future.