The Federal Government has on Wednesday gazetted the market-based pricing regime of the nation’s petroleum downstream sector. With the announcement, oil marketers across the country now have the power to fix petrol pump price based on market forces.

The official gazette containing the new petrol price regime was disclosed to newsmen by the Petroleum Products Pricing Regulatory Agency, PPPRA, spokesman, Apollo Kimchi. Vanguard had reported that the Executive Secretary of the PPPRA, Saidu Abdulkadir, during a press briefing stated that “The pronouncement that the sector is deregulated means that prices would strictly be based on the forces of demand and supply.

“It is a market that is open, based on bargaining power and based on where you source your product.”

However, while giving a breakdown on the parameters involved, Abdulkadir, said: “The Petroleum Products Marketing Company (PPMC) had been the one announcing the price of petrol over the last few months, because it was within its rights to do so, as one of the oil marketers and a major supplier of the commodity.

“The price of Premium Motor Spirit (PMS) also known as petrol is not directly correlated with the crude oil price. A number of other factors are responsible for the price of the commodity.

“The price of petrol in the Nigerian market would be determined by market forces.

“The PPPRA, however, would continue to remain relevant irrespective of the deregulation of the downstream petroleum sector.

“PPPRA will continue to regulate the sector, and stipulate codes of conduct within which marketers must operate by,” he added.

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