Petroleum Products Pricing Regulatory Agency (PPPRA) on Thursday said it has removed the cap on the price of Premium Motor Spirit (PMS) also known as petrol, stating that the agency would henceforth allow market forces to determine the price of PMS in the country.
The agency disclosed the latest development in a document titled, ‘’Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020’’
In the document signed by its Executive Secretary, Mr Abdulkadir Saidu, PPPRA said that, henceforth, the price of PMS would be determined by market forces.
Adding that it would continue to monitor trends in the crude oil market and advise the Nigerian National Petroleum Corporation and oil marketers on monthly guiding price for the commodity.
The agency said that it made the regulations with the approval of the President Muhammadu Buhari.
“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.
“The regulations may be cited as the Premium Motor Spirit (PMS) Market Based Pricing Regime Regulations, 2020, made this 20th day of March, 2020,” it said.
According to the Petroleum Products Pricing Regulatory Agency, 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.
The removal of price cap on PMS by the agency is coming barely four days after it announced a new retail price band for oil marketers.
The downstream regulator had in a circular dated May 31st, made available to the press, said that oil marketers were now expected to sell petrol within the price range of N121.50 and N123.50.