The Petroleum Product Pricing Regulatory Agency,PPPRA on Sunday said its recently published regulation on official deregulation of petroleum pump price does confer on marketers the power to fix prices for the product as they deem fit, but rather guiding prices would be advised by the PPPRA according to market realities.
The Agency in a clarification statement in Sunday noted that it shall monitor market trends and also advise the NNPC and Oil Marketing Companies on the monthly market-based guiding price, which shall include the indicative retail price at which the product shall be sold across the country.
According to the statement,the agency noted that it’s attention had been drawn to several publications in the print and electronic media which reported that the it has removed the price cap on Premium Motor Spirit (PMS), giving marketers the freedom to fix the price of the commodity and sell above the stipulated price.
The Agency stated that it is necessary to correct the misconception and clarify the following in no uncertain terms.
It would be recalled that the removal of Premium Motor Spirit (PMS) price cap and implementation of a market-based pricing regime was first announced by the Honorable Minister of State for Petroleum Resources, Chief Timipre Sylva, in March 2020.
This was followed by PPPRA’s publication announcing the Regulation on the market-based pricing regime, thus creating a legal framework for the policy.
Timpre Sylva,the Minister of state for Petroleum Resource it would further be recalled had earlier stated that the Federal Government will continue to monitor the price of petroleum products and advise on monthly guiding prices that guarantee reasonable returns to Operators while ensuring consumers pay appropriate prices in line with market reality and are not overcharged.
The Minister,noted emphatically that the government’s role in a deregulated economy was to provide, through the operation of the Petroleum Products Pricing Regulatory Agency, a pricing mechanism to create a market-driven price regime.
“For the avoidance of doubt, it is instructive to state that no private individual or group, has the mandate to fix prices of petroleum products, however the statutory regulatory body is saddled with the responsibility of advising guiding prices.”Abdulkadir Said, the Executive Secretary of PPPRA said. in the statement.
