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JUST IN: FG removes fuel price cap, gives marketers freedom to fix price

by Abubakar Ismail Kankara
June 5, 2020
in National
0
BREAKING: FG – Reduces Petrol Price To N121.50
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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

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In the document signed by its Executive Secretary, Mr. Abdulkadir Saidu, 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 Regulation

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

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Abubakar Ismail Kankara

Abubakar Ismail Kankara

Abubakar Ismail Kankara is an accomplished investigative journalist, fact-checker, seasoned storyteller, PR professional, skilled video editor, website designer, and proficient in SEO/Social Media Management. Additionally, he is a 2023 Govspend Media Fellow and a 2024 UDEME Accountability Fellow.

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