The federal government yesterday indicated that it was reviewing the current pricing template for petrol, which was last adjusted four years ago, in order to reduce the alleged exploitation of Nigerians by the operators in the downstream sector.
The government stated that it was finalising the re-adjustment of cost elements and profit margins on the pricing template for marketers to reflect the current market-driven pricing regime and ensure that consumers are not overcharged.
A statement by the Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA), Mr. Saidu Abdulkadir, stated that the agency was also collaborating with the Ministry of Petroleum Resources and Ministry of Justice, which have put in place a regulation on petrol market-based pricing regime.
The statement reads: “In accordance with the above, the development of guidelines for petroleum products commercial framework has been concluded and code of conducts for operators is currently being prepared to reflect the present price regime.
“The agency, in collaboration with the office of the Honourable Minister of State for Petroleum Resources and the office of the Attorney-General of the Federation has put in place, a regulation on the petrol market-based pricing regime,” he said.
On questions over the sustainability of the pricing regime without a regulatory or legal framework, Abdulkadir said extant laws such as the PPPRA Act No. 8 of 2003 and the Petroleum Act gave the agency the legislative backing to formulate policy initiatives on pricing regime.
He said it also empowered the PPPRA to limit price gouging, create a level playing field for operators and protect consumers.
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