Market forces will henceforth determine prices of fuel — PPPRA

Chinazor Megbolu

 

The Petroleum Products Pricing Regulatory Agency (PPPRA) has disclosed that henceforth the prices of Premium Motor Spirit (PMS) also known as petrol, will be determined by the forces of demand and supply together with the international price of crude oil.

The Agency also explained that non-availability of foreign exchange is the reason most marketers don’t import petroleum products. 

 

The Petroleum Products Pricing Regulatory Agency (PPPRA) disclosed this on Tuesday in Abuja during a press briefing on the deregulation of the downstream oil and gas sector, stating the non-availability of foreign exchange was the major reason marketers couldn’t start importing petroleum products.

The Executive Secretary, PPPRA, Mr. Saidu Abdulkadir said that although the Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), is still the sole importer of petroleum products, his agency will continue to see day to day development towards checking profiteering by marketers.

“The PPPRA as a regulator will continue the role of a watchdog in this deregulation regime. We will continue to maintain our role as a regulator and ensure that Nigerians are not short-changed in any way in this process.

“You know how things are globally with the impact of Covid-19 on the global oil market. Accessing forex remains a challenge for marketers.’’

“We are hopeful that in a few months to come, Nigerians will understand what the government is doing to stabilize the downstream sector,’’ he said.

He, however, maintained that though the government was no longer in the business of fixing the pump price of petrol, but added  that the agency would continue to monitor marketers in a bid to avoid profiteering.

Abdulkadir noted the agency may no longer provide the monthly price band for petrol as that would run contrary to the deregulation policy at the moment.