Says PPPRA to advice on monthly price
The federal government Thursday proceeded with the full
deregulation of the downstream petroleum sector with the removal of
the existing cap on fuel prices.
With the latest development, it was learnt that marketers can
now import the product and sell at prevailing market prices,
without the usual price band set by the concerned regulatory
agency.
In a release late Thursday, the Petroleum Products Pricing
Regulatory Agency (PPPRA), noted that henceforth prices would be
fully determined by market forces.
The Petroleum Products Pricing Regulatory Agency, PPPRA, has
removed the cap on the price of Premium Motor Spirit (PMS), also
known as petrol, giving marketers the freedom to fix the price of
the commodity and sell above the price stipulated by it.
The PPPRA, in a document, released,on Thursday evening, titled,
‘Market Based Pricing Regime for Premium Motor Spirit (PMS)
Regulations, 2020,’ stated that, henceforth, the price of PMS would
be determined by market forces.
In the document signed by its Executive Secretary, Mr.
Abdulkadir Saidu, and backdated to March this year, the PPPRA,
however, stated that it 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 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 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 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.
Says PPPRA to advice on monthly price
The federal government Thursday proceeded with the full
deregulation of the downstream petroleum sector with the removal of
the existing cap on fuel prices.
With the latest development, it was learnt that marketers can
now import the product and sell at prevailing market prices,
without the usual price band set by the concerned regulatory
agency.
In a release late Thursday, the Petroleum Products Pricing
Regulatory Agency (PPPRA), noted that henceforth prices would be
fully determined by market forces.
The Petroleum Products Pricing Regulatory Agency, PPPRA, has
removed the cap on the price of Premium Motor Spirit (PMS), also
known as petrol, giving marketers the freedom to fix the price of
the commodity and sell above the price stipulated by it.
The PPPRA, in a document, released,on Thursday evening, titled,
‘Market Based Pricing Regime for Premium Motor Spirit (PMS)
Regulations, 2020,’ stated that, henceforth, the price of PMS would
be determined by market forces.
In the document signed by its Executive Secretary, Mr.
Abdulkadir Saidu, and backdated to March this year, the PPPRA,
however, stated that it 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 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 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 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.