After years of indecision, Nigeria, Africa’s number one producer of crude oil has finally deregulated the downstream arm of its petroleum sector, thereby leaving buyers and sellers at the mercy of market forces.
A document released by the Petroleum Products Pricing Regulatory Agency (PPPRA) on Thursday has it that there is no longer a formal or official cap on price of Premium Motor Spirit (PMS) also known as petrol, adding that the regulations were made with the approval of President Muhammadu Buhari.
According to the agency the regulations sought 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.
Titled, “Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020,” the document which was signed by PPPRA Executive Secretary, Abdulkadir Saidu, stated that henceforth, the price of PMS would be determined by market forces.
The agency said 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.
“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 stated