The Petroleum Products Pricing Regulatory Agency has removed the cap on the price of Premium Motor Spirit, giving marketers the freedom to fix the price of the commodity and sell above the price set by it.
The PPPRA, in a document released, on Thursday titled, ‘Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020,’ stated that, henceforth, the price of PMS will be determined by market forces.
In the document signed by its Executive Secretary, Abdulkadir Saidu, the PPPRA, however, stated that it will 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 PPPRA said, “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 make 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 litre 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 Spirit (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.