The Federal Government is no more going to be releasing guiding price bands for the sale of Premium Motor Spirit, popularly called petrol at filling stations; hence, oil marketers are now free to fix prices.
The Petroleum Products Pricing Regulatory Agency disclosed this in Abuja adding that based on this, the downstream arm of the oil and gas sector had been fully deregulated.
The agency’s Executive Secretary, Abdulkadir Saidu, while responding to questions from journalists during a briefing at the headquarters of PPPRA, stated that going forward, PMS price would be determined by the forces of demand and supply and the international cost of crude oil.
Saidu, however, noted that the role of the agency would be to ensure that oil marketers do not profiteer, as every petrol dealer was, henceforth free to source for product and fix their price.
He stated that it must, however, be in accordance with the agency’s code of conduct because as a regulator, it is the agency’s duty to protect the consumer thus, operators must abide by our codes.
Recall that on March 19, 2020, the government, through the Petroleum Products Pricing Regulatory Agency, commenced what it called a petrol pricing regime, whereby it releases bands showing upper and lower limits for the pump price of petrol monthly.
It released petrol price bands for about three months although some operators faulted the decision as they claimed it did not speak well of a deregulated downstream oil sector.
The PPPRA, however, did not issue price guidelines for the months of August and September but declared on Tuesday that it would not provide such guiding prices anymore, adding that full deregulation was now in force.