The Federal Government has disclosed that the price of will now be fully based on the forces of demand and supply.
The General Manager of the Petroleum Products Pricing Regulatory Agency (PPPRA), Victor Shidok, at a press conference in Abuja said the market is now open.
“It is based on bargain power,” he said. “It is based on where you source your products.”
However, he noted that the government will ensure customers are protected from price-gouging and other ills associated with free markets.
“You could have a regulator that always stand and remain a watchdog to see how these forces are being played out, how the interest if both operators and consumers are being taken care of,” he said.
PPPRA is a Federal Government agency established in 2003 to monitor and regulate the supply, distribution and prices of petroleum products in the country.
Last week, the Minister of State for Petroleum Resources, Chief Timipre Sylva said the nation has gone into full deregulation and market forces now determine the price of the product.
The deregulation has been singled out as the reason behind the recent hike in the price of petrol.
According to Sylvia, deregulation will be difficult for Nigerians at the initial stage but will get better in the long run.
He added that since the announcement of full deregulation in March, the Federal Government has saved over N1 trillion.