The cap in the price of Premium Motor Spirit (PMS) also known as petrol has been removed by the Petroleum Products Pricing Regulatory Agency (PPPRA).
This development will give freedom to marketers to fix the price of the commodity and sell above the price stipulated by it.
This was contained in a statement titled, ‘Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020,’ which was released on Thursday, June 4.
The PPPRA said that henceforth, the price of PMS would be determined by market forces.
Executive Secretary of PPPRA, Abdulkadir Saidu who released the statement said 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.”