Abuja – The Petroleum Products Pricing Regulatory Agency (PPPRA) has removed the cap on the price of Premium Motor Spirit (PMS) also known as petrol.
Also the Nigerian National Petroleum Corporation (NNPC) says it is firming up business portfolios in the power, medical, housing and other sectors that would strengthen the profitability of the state owned oil company.
The agency made the disclosure in a document it released in Abuja on Thursday entitled, ‘’Market Based Pricing Regime for Premium Motor Spirit (PMS) Regulations, 2020’’.
It said in the document signed by its Executive Secretary, Mr Abdulkadir Saidu, that, henceforth, the price of PMS would be determined by market forces.
It said that it would continue to monitor trends in the crude oil market and advise the Nigerian National Petroleum Corporation and oil marketers on monthly guiding price for the commodity.
The agency said that it made the regulations with the approval of the President Muhammadu Buhari.
“From the commencement of these regulations, a market-based pricing regime for Premium Motor Spirit (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.
“The regulations may be cited as the Premium Motor Spirit (PMS) Market Based Pricing Regime Regulations, 2020, made this 20th day of March, 2020,” it said.
According to the agency, the regulations seek to complement and enforce the provisions of the PPPRA (Establishment) Act, 2003, and to notify the general public of the existence of a market-based pricing regime for PMS with effect from March 2020.
The Nigerian National Petroleum Corporation (NNPC) says it is firming up business portfolios in the power, medical, housing and other sectors that would strengthen the profitability of the state owned oil company.
The corporation said in a statement on Thursday that the move was part of measures to cope with the boom and bust cycle in the global crude oil market and to sustain revenue generation for the country.
The statement quoted the corporation’s Chief Operating Officer, Ventures and Business Development, Mr Roland Ewubare, as saying that the Ajaokuta-Kaduna-Kano (AKK) pipeline network would enable the NNPC to deepen its footprint in the power sector through the establishment of an Independent Power Plants.
Ewubare also stated that NNPC would use its network of excellent medical centres across the country to provide innovative healthcare for Nigerians.
“NNPC is creating an energy company that would have portfolios in renewable energy; we have initiatives on solar that is ongoing.
“We have got biofuels agreements with some state governments that would soon be activated.
“We do have a lot of non-core businesses that are aggregated under the Ventures and Business Development Autonomous Business Unit of the NNPC.
“This would be expanded through effective collaboration and partnership with the private sectors,” Ewubare said in the statement signed by NNPC Spokesman, Kennie Obateru.
He further disclosed that the NNPC had hectares of land across the country and would soon partner with private developers to reduce the housing deficit in the country for the benefit of Nigerians who are core shareholders of the corporation.
Ewubare explained that NNPC’s aspiration was to achieve a 10 dollar per barrel cost by the fourth quarter of 2021, adding that a lot of logistics costs would be recalibrated to drive down the cost of crude oil production in the country.
“When you have a low commodity price regime, as the case now, the only way we are able to squeeze out some reasonable cash and financial gain to the nation is by curtailing and constraining our costs in line with the GMD’s aspiration to push for a 10 dollar per barrel cost of production.
‘Against this backdrop, the conversation around cost becomes an imperative and urgent one,” Ebuware said.
He said the corporation was working closely with its partners to commercialise flared gas by converting it to Compressed Natural Gas (CNG) and Liquefied Natural Gas, adding that the gesture would preserve the flora and fauna of the country.