By Idowu Abdullahi,
Former Vice President, Atiku Abubakar, has commended the Federal Government for ending fuel subsidy and removing the cap on the price of Premium Motor Spirit (PMS) in the country.
The apex government had through the Petroleum Products Pricing Regulatory Agency (PPPRA) granted marketers of the product the freedom to fix prices and sell petrol above the price after it removed the cap on the price of the product, a development which meant the government ended the subsidy regime.
PPPRA, through a document signed by its Executive Secretary, Abdulkadir Saidu, which was released to newsmen yesterday, explained that the action of the government translate that price of perttol would be determined by market forces going forward.
According to the document, titled, ‘Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020,’ the regulatory agency would also continue to monitor trends in the crude oil market and appropriately advise the Nigerian National Petroleum Corporation (NNPC) and oil marketers on the monthly guiding price for the commodity.
“In exercise of the powers conferred on it by Sections 7 and 24 at 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 (The Agency), with the approval of the President hereby makes the following Regulation:
“Short title: 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 the NNPC and oil marketing companies on the monthly guiding Market-Based Price.
“The price of Premium Motor Spirit (PMS) advised by the Agency shall be guiding retail price at which the product shall be sold across the country.
“This regulation may be cited as the Premium Motor Spirit (PMS) Market Based Pricing Regime Regulations, 2020, made this 20th day of March 2020,” the document read.
But, Atiku, who was the 2019 Peoples Democratic Party presidential flagbearer, while reacting to the development through a post on his social media page, maintained though the action was commendable, it was a little bit late.
According to him, it would have served the interest of the nation better had the action been taken when the economy was stronger with prices of oil on an all-time high.
“FG finally withdraws from the fuel subsidy and price-fixing bazaar that had been rife with corruption and stalling investments. This is something patriots have been calling for and for which I was demonised.
“The stoppage of subsidy and price-fixing is the right move, although it should have come earlier when the economy was stronger,” he wrote.
The stoppage of subsidy and price-fixing is a right move, although it should have come earlier when the economy was stronger.
— Atiku Abubakar (@atiku) June 5, 2020