Marketers have been given the liberty to fix the price of Premium Motor Spirit (PMS) also known as petrol, as the Petroleum Products Pricing Regulatory Agency, PPPRA has removed the cap on the price of the commodity.
This means that marketers can now fix and sell above the petrol price stipulated by the PPPRA.
This information was revealed in a document released on Thursday evening by the PPPRA titled, ‘Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020,’
In the document signed by its Executive Secretary, Mr. Abdulkadir Saidu, PPPRA stated that, henceforth, the price of PMS would be determined by market forces.
The agency also stated that it would continue to monitor trends in the crude oil market and advise the Nigerian National Petroleum Corporation (NNPC) and oil marketers on the monthly guiding price for the commodity.
Explaining the reason for the regulation, the PPPRA disclosed that the Regulations seek to complement and enforce the provisions of the PPPRA (Establishment) Act 2003 and to notify the general public of the existence of a Market-based Pricing Regime for PMS with effect from March 2020.
“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:”, the PPPRA said.
“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.