…removes fuel price cap, charges PPPRA with monthly advice on price
The Petroleum Products Pricing Regulatory Agency on Thursday removed the cap on the price of Premium Motor Spirit (PMS), also known as petrol, allowing marketers the free hand to fix price and even sell above the official stipulated price.
The PPPRA, in a document entitled, “Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020,” announced that henceforth market forces would determine the price of petrol.
According to the document signed by the PPRA Executive Secretary, Mr. Abdulkadir Saidu, the regulatory body will, however, continue to monitor trends in the crude oil market and advise the Nigerian National Petroleum Corporation and oil marketers on the monthly guiding price for the commodity.
PPPRA said, “In exercise of the powers conferred on it by Sections 7 and 24 at the Petroleum Products Pricing Regulatory Agency (Establishment) Act. No. 8 of 2003, and all other powers enabling it in that behalf, the Petroleum Product Pricing Regulatory Agency (The Agency), with the approval of the President hereby makes the following Regulation: “Short title: Market Based Pricing Regime for Premium Motor Spirit (PMS) using the Pricing Template of the Petroleum Products Pricing Regulatory Agency.
“The price cap per liter in respect of Premium Motor Spirit (PMS) is removed from the commencement of these Regulations. From the commencement of these Regulations, a market-based pricing regime for Premium Motor Saint (PMS) shall take effect.
“The Agency shall monitor market trends and advise the NNPC and oil marketing companies on the monthly guiding Market-Based Price.
“The price of Premium Motor Spirit (PMS) advised by the Agency shall be guiding retail price at which the product shall be sold across the country.
“This regulation may be cited as the Premium Motor Spirit (PMS) Market Based Pricing Regime Regulations, 2020, made this 20th day of March 2020.”
Also in an explanatory note to the regulation, the agency said that the Regulations seek to complement and enforce the provisions of the PPPRA (Establishment) Act 2003 and to bring to the awareness of the general public the existence of a Market-based Pricing Regime for PMS with effect from March 2020.