Nigeria has officially relaxed its policy, which previously controlled and set the price of petrol with the Petroleum Products Pricing Regulatory Agency’s, (PPPRA) removal of the cap on the price of the commodity, giving traders and retailers the freedom to control and set the price.
The PPPRA, in a document released Thursday titled, ‘Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020,’ said the price of petrol will be wholly determined by the markets.
Executive Secretary, Mr. Abdulkadir Saidu of the agency however said it would continue to monitor the international crude oil market monthly and advise the Nigerian National Petroleum Corporation (NNPC) and oil marketers on the monthly guiding price for the commodity.
“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.”
The PPPRA, in the explanatory note to the regulation, 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.