The Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA), Mr. Abdulkadir Saidu has disclosed that henceforth, market forces will determine the price of premium motor spirit popularly referred to as petrol.
NNPC Group Managing Director, Mele Kyari had earlier this month revealed that the era of subsidy payment was over.
The price of crude oil globally has fallen from about $57 per barrel to a little above $20.
The Executive Secretary said that while consumers have seen the price of petrol come down in two consecutive months, the monthly adjustment would continue even if the price of crude oil rises in the international market.
In a statement in Abuja, made available to journalists, Saudi explained that market fundamentals would henceforth guide the monthly price of petrol and other petroleum products like diesel and kerosene which would be brought under the price modulation mechanism of the government.
“The Market-based pricing regime came into effect 19th March, 2020, following Government’s approval for the adjustment of PMS Price from N145.00 to N125.00/litre. Going forward, pricing of PMS will reflect market fundamentals. PPPRA will continue to monitor price trends and advise monthly guiding price for all petroleum products, based on prevailing market realities and other pricing fundamentals”.