Henceforth the price of petrol in Nigeria, will be determined by market forces, the Petroleum Products Pricing Regulatory Agency (PPPRA) said.
The agency said it has removed the cap on the price of the product also known as Premium Motor Spirit (PMS).
The agency made the disclosure in a document it released in Abuja on Thursday entitled, ‘’Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020’’.
The document was signed by its Executive Secretary, Mr Abdulkadir Saidu. It has the approval of President Muhammadu Buhari, who is also the oil minister..
According to the document, the PPPRA 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.
“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 agency, the regulations seek to complement and enforce the provisions of the PPPRA (Establishment) Act, 2003.
They also notify the general public of the existence of a market-based pricing regime for PMS with effect from March 2020.