FRI, JUN 05 2020-theG&BJournal- The Federal Government have deregulated petrol pricing in the country, effectively ending the subsidy regime which for years placed fiscal stress on the macroeconomy.
The Petroleum Products Pricing Regulatory Agency (PPPRA) late Thursday announced new regulations with the approval of the President, which includes the removal of price cap per litre on Premium Motor Spirit (PMS) or Petrol.
The PPPRA said it will continue to issue monthly market-based price guidance and ‘’monitor market trends and advise the Nigerian National Petroleum Corporation (NNPC) and oil marketing companies on the monthly guiding market-based price.’’
The new measure is a surprise move away from the consistent price alteration in place since the outbreak of the coronavirus pandemic. This will now allow a level platform for marketers to compete in a free market system, and price determined by the forces of demand and supply.
It will also help the Federal Government reduce drastically its recurrent expenditure and reduce the pressure on real exchange rate.
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