Uche Usim, Abuja
In line with the partial deregulation of petrol (also known as premium motor spirit), the Petroleum Products Pricing Regulatory Agency (PPPRA) has removed the cap on the price of the product, insisting that the retail price will, henceforth, be determined solely by market realities.
In a statement titled, ‘Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020,’ and published on its website, the PPPRA Executive Secretary, Abdulkadir Saidu said that the agency 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.
The statement in part reads; “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 federal government, in March, announced that the retail price of petrol would be adjusted monthly to reflect realities in the global crude oil market.
The pump price was fixed at N125 per litre in March and was reviewed downwards in April to N123.50.
In May, only the ex-depot price was reviewed downwards to N108.
Meanwhile, the Minister of State, Petroleum Resources, Mr Timipre Marlin Sylva recently said that oil marketers alone would not be allowed to determine the price of the commodity despite the fact that the product, at the moment, has been deregulated.
He said the move stems from the urgent need to protect the public from undue exploitation and inordinate profiteering by the importers.