PETROLEUM PRODUCTS PRICING REGULATORY AGENCY
The Petroleum Products Pricing Regulatory Agency (PPPRA) is an agency of the government of Nigeria established in 2003 to, among other responsibilities, monitor and regulate the supply and distribution, and determine the prices of petroleum products in Nigeria. Its headquarters is located in Abuja, Nigeria.
The Government on the 14th August 2000 set up a 34-member Special Committee on the Review of Petroleum Products Supply and Distribution (SCRPPSD) drawn from various stakeholders and other interest groups to look into the problems of the downstream petroleum sector.
Prior to the setting up of the Committee, the downstream sector was characterized by the following problems:
In October 2000, the Committee submitted its reports and the Government meticulously studied the recommendations and made its views as published in the Government white paper. Some of the far-reaching recommendations of the committee accepted by the Government in its white paper are as follows:
- Stakeholders (marketers, transporters, dealers, industrial converters and others) are unhappy because of the shortages and the prevailing cost and price structure which lead to low returns on capital investment and encourage malpractices, which in turn hamper an efficient supply and distribution system.
- Operational facilities at the depots and the pipelines should immediately be repaired.
- To prevent further malpractices, all coastal supplies of AGO through nominated company vessels should be stopped as subsidies to the target group (NEPA, Rigs operators) were not justified.
- Restructuring of the NNPC and its subsidiaries with the setting up of the committee on that in the first quarter of 2001.
- Dualization of all roads leading to the refineries and depots to allow easy access and improve the efficiency of operations.
- Current efforts to resuscitate the Nigeria Railway system by Government should be sustained.
- The government should deregulate and liberalize the import of petroleum products by other parties and that prices of products should be based on import parity to enhance and encourage the participation of other players other than the NNPC.