The Petroleum Products Pricing Regulatory Agency has removed the cap on the price of Premium Motor Spirit, also known as petrol.
The agency made the disclosure in a document it released in Abuja on Thursday, entitled: “Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020.”
It said in the document signed by its Executive Secretary, Abdulkadir Saidu, that henceforth, the price of PMS would be determined by market forces.
It said it would continue to monitor trends in the crude oil market and advice the Nigerian National Petroleum Corporation and oil marketers on monthly guiding price for the commodity.
The agency said it made the regulations with the approval of President Muhammadu Buhari.
The PPPRA said: “From the commencement of these regulations, a market-based pricing regime for Premium Motor Spirit (PMS) 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 (PMS) advised by the agency shall be guiding retail price at which the product shall be sold across the country.
“The regulations may be cited as the Premium Motor Spirit (PMS) Market Based Pricing Regime Regulations, 2020, made this 20th day of March, 2020.”
According to the agency, the regulations seek to complement and enforce the provisions of the PPPRA (Establishment) Act, 2003, and to notify the general public of the existence of a market-based pricing regime for PMS with effect from March 2020.