The Federal Government is not going to be determining guiding price bands for the sale of petrol at fuel stations, because oil marketers are now free to fix prices.
On Thursday, March 19, 2020, the government commenced what it called a petrol pricing regime, through the Petroleum Products Pricing Regulatory Agency, by which it releases bands showing upper and lower limits for the pump price of petrol monthly.
The Federal government set out petrol price bands for about three months although some operators faulted the decision as they claimed it did not speak well of a deregulated downstream oil sector.
The PPPRA, on the other hand, did not issue price guidelines for the months of August and September but said on Tuesday that it would not provide such guiding prices anymore, also that full deregulation was now in force.
Responding to questions from journalists during a briefing at the headquarters of the agency, the Executive Secretary, Abdulkadir Saidu, stated that from now, petrol price would be determined by the forces of demand and supply and the international cost of crude oil.
He, however, noted that the role of the agency would be to ensure that oil marketers do not profiteer, as every petrol dealer was, henceforth, free to source for the product and fix their prices.
“This, however, must be in accordance with our code of conduct because as the regulator, it is our duty to protect the consumer and operators must abide by our codes,” Saidu stated.