THE Federal Government on Tuesday says major and independent marketers are now free to fix the retail price of the Premium Motor Spirit (PMS) known as petrol.

Abdulkadir Saidu, Executive Secretary of Petroleum Products Pricing Regulatory Agency (PPPRA) stated during a press briefing in Abuja that government would no longer be releasing guiding price bands for the sale of petrol at filing stations.

While noting that the downstream arm of the oil and gas sector had been fully deregulated with this development, Saidu added that price of petrol would be driven by the forces of demand and supply and the international cost of crude oil.

He however stated that the PPPRA will still exercise some level of regulation, especially to prevent marketers from overcharging customers.

“This, however, must be in accordance with our code of conduct because as a regulator, it is our duty to protect the consumer and operators must abide by our codes,” Saidu stated.

This is coming about 72 hours after Pipelines and Product Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation, (NNPC) increased pump price from N148 to N151.56.

Petrol is now sold at between N159 and N161 per litre at filling stations across the country.

Meawhile, Atiku Abubakar, a former Vice President wondered why the government increased the pump price when it claimed to have deregulated the downstream sector.

“I am a businessman. I look at things from an economic perspective. Questions beg answers. The price of crude is down from where it was in 2019. In the US and Europe, fuel prices are far lower than they were in 2019. If we truly deregulated, shouldn’t fuel price have dropped?, his tweet read.

In March, the Federal Government announced the removal of cap prices for petrol. Saidu via a memo clarified that the agency would only provide monthly guiding price for the commodity.

“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 PMS shall take effect,” he said.