The Petroleum Products Pricing Regulatory Agency (PPPRA)  of Nigeria has removed the cap on the price of petrol in the county.

A signed document by the Executive Secretary of the Agency, Mr Abdulkadir Saidu, titled “Market Based Pricing Regime for Premium Motor Spirit (PMS) regulations, 2020,” which was released on Thursday, stated that thenceforth, the price of Premium Motor Spirit (PMS) would be determined by players in the market forces.

This new regulation implies that all marketers can import PMS and now have the freedom to set their own petrol prices without government interference. This follows the restructuring in Nigeria’s downstream oil industry.

However, the agency said that it would not stop monitoring new trends in the oil market, and advising the Nigerian National Petroleum Corporation (NNPC) and oil marketers on the monthly guiding price for crude.

It also stated that the new regulation, which was approved by President Muhammadu Buhari, complemented and enforced the provisions of the PPPRA (Establishment) Act 2003.

The document reads:

“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.”

The agency notified the general public of the existence of a market-based pricing regime for petrol with effect from March 2020.