…expert describes it as a dominant firm market behaviour
NNPC Limited wishes to inform its esteemed customers that it has adjusted pump price of Premium Motor Spirit, PMS, across its retail outlets, in line with the current market realities.
This is made known in a release signed by the Chief Corporate Communications Officer, NNPC Ltd, Garba Deen Muhammad, which was made available to Energy Frontier.
The company says it strives to provide the public with quality service which it is known for, it is pertinent to note that prices will continue to fluctuate to reflect market dynamics.
It however assures that NNPC Ltd, is committed to ensuring ceaseless supply of products.
The company sincerely regrets any inconvenience this development might have caused.
“We greatly appreciate your continued patronage, support and understanding through this time of change and growth”, said the Coy
Reacting to this development, Wumi Iledare, a Professor of Petroleum Economics, so also a Research Professor and GNPC Chair at University of Cape Coast, Ghana, stated that NNPL recently released pricing framework, which looks like a dominant firm market behaviour.
“It is basically anticompetitive that is derived from a monopoly import market structure for PMS. NNPCL is basically setting the price of PMS indirectly as a dominant firm in the downstream market, which is really not supported by PIA 2021”, he said.
Professor Iledare who is also the Executive Director, Emmanuel Egbogah Foundation, said, “Unfortunately, the Petroleum Authority, which ought to have checkmated such a firm dominant behavior is handicapped. Publishing its price just because President Bola Tinubu, BAT, inadvertently said what he should not have said seems authoritarian and not transformational”, he added.
“I guess presidential pronouncement has become synonymous to Petroleum Policy pronouncement of the FG. I guess this perhaps, explains why the PIA2021 was disregarded since August 2021 because of the pronouncements of PMB on subsidy” stressed Iledare.
“A democratic nation as big as Nigeria cannot be governed on the basis of political expediency. I am a little worried at the suddenness at which NNPCL released this pricing framework just like that. The Authority and perhaps the Consumer Protection Agency need to ensure that Consumer surplus has not been compromised”, he opined.