There were indications yesterday that the liberalisation of pump price of Premium Motor Spirit will soar, as it will be determined by the market realities.
The Petroleum Products Pricing and Regulation Agency, through its Executive Secretary, Abdulkadir Saidu, disclosed this on Monday while responding to questions on the new price regime.
PPPRA warned that since the market would determine the prices of PMS, Nigerians should be ready to pay more or low prices.
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Saidu told reporters, “What we have in place is a market reflective system. Petroleum products prices will be adjusted in line with market realities and the result is what we see presently with prices on the downward slide.
“Accordingly, price will naturally be adjusted to reflect a true picture of market fundamentals at any particular period, high or low.”
It also revealed that it was in talks with the Central Bank of Nigeria to help determine applicable Foreign Exchange rates for the importation of petroleum products and the modalities for accessing the Forex window by oil marketers.
“This rate is reflected on the rising template to determine the Expected Open Market Price of the product. This means that, going forward, the guiding price to be advised will be determined based on the rates quoted by the CBN.
“The price is expected to guide the sale of PMS in Nigeria. In fact, we plan to extend the same mechanism to Aviation Turbine Kerosene, Automotive Gasoline Oil, among others. The whole essence of the price band is to ensure price efficiency that is beneficial to both the consumers and oil marketers,” Saidu.
He expressed optimism that the Dangote Refinery, upon completion, together with other modular refineries, will help in the new price regime.
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