Nigeria says no increase in pump prices after regulator sparks confusion

LAGOS, March 12 (Reuters) - Nigeria has not increased
gasoline pump prices, its fuel regulator said on Friday, after
sparking confusion at fuel stations and a public backlash by
apparently flagging a big rise was on the cards.
"There is no price increase. The current (gasoline) price is
being maintained while consultations are being concluded," the
Petroleum Products Pricing Agency (PPPRA) said in a statement.
On Thursday, the regulator posted an online notice listing
the "guiding price" for "ex-depot", or wholesale, gasoline at
206.42 naira per litre - well above the previous pump prices of
around 167 naira.
After local media reported the post, some consumers flocked
to fuel stations, prompting a sharp rise in prices at some, and
others to stop selling amid the confusion.
In Lagos, at least two stations were charging 248 naira per
litre, compared with 167 naira on Thursday.
Nigeria is struggling to balance a promise to eliminate
costly fuel subsidies with public anger over more expensive
fuel. Oil prices have risen about 25% since the beginning of
February, but state oil company NNPC vowed prices would not
increase in March, meaning that it could be losing millions
daily on gasoline imports.
Following the public backlash - and statements from NNPC,
the petroleum minister and a presidential spokesman that higher
prices were not approved - PPPRA removed its post about the
guidance for ex-depot prices.
NNPC is currently the only gasoline importer due to the
state-controlled ex-depot price that is keeping levels
artificially low. It has said it is consulting with unions to
agree a formula that allows gasoline prices to float, but still
protects consumers.
In mid February, fuel marketers estimated gasoline was
costing NNPC some 1.2 billion naira ($3.2 million) per day, a
huge risk to government finances. Eliminating subsidies was
among conditions for a $1.5 billion World Bank budget support
loan.
($1 = 380.5500 naira)