The Petroleum Products Pricing Regulatory Agency (PPPRA) said it increased the pump price of petrol to N143 from N121 in response to increase in the price of crude oil as well as petroleum products in the international market.
General Manager, Corporate Services of PPPRA, Mr. Kimchi Apollo disclosed this on Thursday.
He said the price in the international market rose in response to higher demand for petrol products as more countries opened up their economies after lockdown.
Apollo stated that the Federal Government had agreed that subsequently, everything concerning the price of PMS would be based on current market fundamentals and market force.
“The current price is reflective of the market fundamentals. This is because of activities picking up worldwide. There was an increased demand for petroleum products, so the prices went up.
“We do not just sit down and fix price; it is based on certain parameters. Also, we did not fix prices, we only gave the guiding prices.
“People are only talking about prices of crude oil; that is not the determining factor alone for PMS price. It is the price of the products in the international market.
“Petroleum products price in the international market is not the same thing as crude oil price. So when some people are complaining, they are only just looking at crude oil price, which is just one component.
“When it is refined, we are not buying crude oil from them, but the products being purchased and all the things that accompany it.
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“On Wednesday, there were reports that South Africa increased their pump price of petrol. It is driven by the same factor; probably, it is because they have seen, when they went to buy, that the price of the commodity had gone up, the same way that we saw that the price of the commodity had increased.
“Based on that we now advised, because we are not fixing prices, we now advised that based on the market fundamentals, it would be safe for you to sell at between N140.80 and N143.80 per litre.
“The more profit-conscious marketers would naturally remain at N143.80, while others would go with the N141.80 per litre price range.”
However, Apollo stated that the Federal Government would not allow marketers solely determine the pump price of the product to avoid exploitation of Nigerians.