The Petroleum Products Pricing Regulatory Agency, PPPRA, has lifted the cap on the price of Premium Motor Spirit (PMS), commonly known as petrol. This move grants marketers the liberty to determine the price of the commodity and sell it above the price previously set by the agency.
According to a statement titled ‘Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020’, released on June 4, the PPPRA announced that the price of PMS would now be influenced by market forces.
In releasing the statement, Executive Secretary of PPPRA, Abdulkadir Saidu, mentioned that the agency would continue to observe trends in the crude oil market and provide guidance on the monthly price for the commodity to the Nigerian National Petroleum Corporation (NNPC) and oil marketers.
The statement includes the following:
“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.”