The newspaper quotes Abdulkadir Saidu, PPPRA executive secretary, as saying the retail price of petrol would henceforth be determined by demand and supply of the commodity and the international price of crude oil.

With this move, it means that the downstream sector of the oil industry has been fully deregulated.

Saidu, who was represented by Victor Shidok, PPPRA general manager for administration and human resources, also said the agency would remain the regulator to ensure that oil marketers do not cheat consumers.

“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.

Saidu was also quoted to have said independent marketers have not begun to import refined petroleum products because of the scarcity of foreign exchange.

In March, the federal executive council approved that the pump price of petrol is modulated in line with happenings in the global oil market.

At the time, it said this was a step in deregulating the downstream sector as the Nigerian National Petroleum Corporation (NNPC) would no longer absorb the difference between the landing cost and the pegged retail price.

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According to the agency, the recommended petrol retail band for a litre of petrol is now between N140.80 and N143.80.

The statement, which was signed by Abdulkadir Saidu, PPPRA executive secretary read: “Please recall the provision for the establishment of a monthly price band within which petroleum marketers are expected to sell PMS at the retail stations, based on the existing price regime”.

“After a review of the prevailing market fundamentals in the month of June and considering marketers’ realistic operating costs, as much as practicable, we wish to advise a new PMS pump price band of N140.80 – N143.80/litre for the month of July 2020.”

Saidu said the new ex-depot price includes the statutory charges of bridging fund, marine transport average, national transport allowance (NTA) and the administrative charge.

He also advised all petroleum marketers to operate with the price band advised by the agency.

The federal government, in March, announced that the retail price of petrol would be adjusted monthly to reflect realities in the global crude oil market.

The pump price was fixed at N125 per litre in March and was reviewed downwards in April to N123.50.

In May, only the ex-depot price was reviewed downwards to N108 and the retail price was adjusted to N121.50 in June.

The price of crude oil increased to above $40 per barrel in June as a result of supply cuts agreed on by the Organisation of Petroleum Exporting Countries (OPEC) and increasing demand as economies reopen across the world.

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