Why PPMC Stopped Announcing Monthly Ex-Depot Price

The Nigerian National Petroleum Corporation (NNPC) on Monday
revealed why its subsidiary -Pipeline Products Marketing Company
(PPMC) stopped announcing its monthly ex-depot price of the Premium
Motor Spirit (PMS).

Its Group General Manager, Group Public Affairs Division, Dr
Kennie Obateru, told The Nation on phone that “there is always an
issue when the price is published.”

Asked why the company has not published the price for the past
two months, he said “they no longer do that.”

His answer confirmed speculations in some quarters that the
Federal Government has decided to control the criticism of price
hike by keeping the price to its chest.

Obateru explained to The Nation: “There is always an issue when
the price is announced. If you say a product is deregulated,
everybody can go to the market to buy it for the price that is good
for him or her.”

The Federal Government had early this year announced the
deregulation of the PMS.

With the announcement, the Petroleum Products Pricing Regulatory
Agency (PPPRA) was always meeting with the major and independent
marketers to arrive at the dealer/pump price.

It later abdicated the responsibility that is even spelt out in
its name to the PPMC.

The agency told the reporters since the product is deregulated,
the marketer – PPMC has the power to fix price in accordance with
market forces.

The Nation confirmed from the Independent Petroleum Marketers
Association of Nigeria (IPMAN) National Vice President, Alhaji
Abubakar Maigandi the PPMC has stopped the monthly notification on
petrol price.

Speaking with The Nation on phone, he said: “They (PPMC) have no
other way of informing marketers what they decide about price since
they stopped sending us memo.”

According to him, since the market is highly competitive,
marketers prefer to patronise the private depots that sell at lower
rates.

He said since the market is deregulated and competitive,
marketers can only opt for the lowest profit margin to attract
customers.

Asked why the sole importer of the product-NNPC should sell the
product higher than private depots, he said “NNPC incurs much cost
than private depots. “

The Nigerian National Petroleum Corporation (NNPC) on Monday
revealed why its subsidiary -Pipeline Products Marketing Company
(PPMC) stopped announcing its monthly ex-depot price of the Premium
Motor Spirit (PMS).

Its Group General Manager, Group Public Affairs Division, Dr
Kennie Obateru, told The Nation on phone that “there is always an
issue when the price is published.”

Asked why the company has not published the price for the past
two months, he said “they no longer do that.”

His answer confirmed speculations in some quarters that the
Federal Government has decided to control the criticism of price
hike by keeping the price to its chest.

Obateru explained to The Nation: “There is always an issue when
the price is announced. If you say a product is deregulated,
everybody can go to the market to buy it for the price that is good
for him or her.”

The Federal Government had early this year announced the
deregulation of the PMS.

With the announcement, the Petroleum Products Pricing Regulatory
Agency (PPPRA) was always meeting with the major and independent
marketers to arrive at the dealer/pump price.

It later abdicated the responsibility that is even spelt out in
its name to the PPMC.

The agency told the reporters since the product is deregulated,
the marketer – PPMC has the power to fix price in accordance with
market forces.

The Nation confirmed from the Independent Petroleum Marketers
Association of Nigeria (IPMAN) National Vice President, Alhaji
Abubakar Maigandi the PPMC has stopped the monthly notification on
petrol price.

Speaking with The Nation on phone, he said: “They (PPMC) have no
other way of informing marketers what they decide about price since
they stopped sending us memo.”

According to him, since the market is highly competitive,
marketers prefer to patronise the private depots that sell at lower
rates.

He said since the market is deregulated and competitive,
marketers can only opt for the lowest profit margin to attract
customers.

Asked why the sole importer of the product-NNPC should sell the
product higher than private depots, he said “NNPC incurs much cost
than private depots. “