Federal government on Thursday proceeded with the full deregulation of the downstream petroleum sector with the removal of the existing cap on fuel prices.

With the latest development, it was learnt that marketers can now import the product and sell at prevailing market prices, without the usual price band set by the concerned regulatory agency.

In a release late Thursday, Petroleum Products Pricing Regulatory Agency (PPPRA), noted that henceforth prices would be fully determined by market forces.

Signed by its Executive Secretary, Mr Abdulkadir Saidu, and backdated to March this year, the document noted that the agency would only continue to monitor trends in the crude oil market and advise Nigerian National Petroleum Corporation (NNPC) and oil marketers accordingly.

“In exercise of the powers conferred on it by sections 7 and 24 of the Petroleum Products Pricing Regulatory Agency (Establishment) Act. No. 8 of 2003, and all other powers enabling it in that behalf, the Petroleum Product Pricing Regulatory Agency, with the approval of the President states as follows:

“Market-based pricing regime for premium motor spirit (PMS) using the pricing template of the Petroleum Products Pricing Regulatory Agency:

“The price cap per litre in respect of Premium Motor Spirit (PMS) is removed from the commencement of these regulations.

From the commencement of these regulations, a market-based pricing regime for Premium Motor Saint (PMS) shall take effect. The agency shall monitor market trends and advise NNPC and oil marketing companies on the monthly guiding market-based price” it said.

It added that the new regulation may now be cited as the “Premium Motor Spirit (PMS) Market Based Pricing Regime Regulations, 2020”.

In the explanatory note to the regulation, it disclosed that the new regulation complements and enforces the provisions of the 2003 act and to notify the general public of the existence of a market-based pricing regime for the product starting from March this year.

Thisday