The Petroleum Products Pricing Regulatory Agency (PPPRA) has announced the removal of the price cap on the retail price of premium motor spirit (PMS).
In a notice published on its website on Thursday, the agency said a market-based pricing regime would now determine the price of the product.
The notice was dated March 20, 2020.
“Removal of existing premium motor spirit price cap per litre. The price cap per litre in respect of premium motor spirit is removed from the commencement of these regulations,” the notice signed by Abdulkadir Saidu, PPPRA executive secretary, read.
“From the commencement of these regulations, a market-based pricing regime for premium motor spirit 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 advised by the agency shall be the guiding retail price at which the product shall be sold across the country.
The agency, on Monday, announced a new price band for petrol.
The federal government, in March, announced that the retail price of petrol would be adjusted monthly to reflect realities in the global crude oil market.
The pump price was fixed at N125 per litre in March and was reviewed downwards in April to N123.50.
In May, only the ex-depot price was reviewed downwards to N108.