(Ecofin Agency) - The Executive Secretary of the Petroleum Product Pricing Regulatory Agency (PPPRA), Farouk Ahmed, has announced that from January 1st, 2016, all fuel stations owned by the National Nigerian Petroleum Corporation (NNPC) will start selling petrol at N86 per litre while independently owned stations is to sell at N86.5 per litre.

Mr. Farouk declared this during a news conference in Abuja, on Tuesday. He noted that the new price was as a result of a new template formed by the PPPRA. This new template is designed to estimate a fuel prices based upon market factors.

“Since 2007, while crude oil price has been moving up and down the template remained the same. This made it necessary for us to introduce a mechanism whereby the template would be sensitive to the price of crude oil. However, the template is not static, as there would be a quarterly review and if there is any major shift, the Minister of State for Petroleum Resources would be expected to call for a review, either upward or downward,” Farouk said.

He added that if any oil marketer was caught selling above the allocated price would be sanctioned by the PPPRA.

According to Sahara Reporters, the Nigerian Labour Congress (NLC) raised serious criticism concerning the move.  The General Secretary of the NLC, Peter Ozo-Eson, classified the move as a way to deregulate petrol prices through the back door. The congress however, urge the government to reconstruct the board of the PPPRA thereby pointing out that its National Executive Committee will be meeting during the New Year to best determine how to respond to government’s recent actions.