President Olusegun Obasanjo has signed into Law a Bill formally setting up the Petroleum Products Pricing Regulatory Agency (PPPRA).

The PPPRA thus becomes an autonomous agency primarily responsible for determining the pricing policy of petroleum products, and regulating their supply and distribution.

Its other functions are:

• Establishing an information and data bank through liaison with all relevant agencies to facilitate informed decisions on pricing policies


• Moderating volatility in petroleum product pricing, while ensuring reasonable returns to operators


• Overseeing the implementation of relevant recommendations and programmes of the Federal Government


• Establishing parameters and codes of conduct for all operators in the downstream petroleum sector


• Maintaining constant surveillance over all key indices relevant to pricing policies


• Periodically approving benchmark prices for all petroleum products


• Identifying macro-economic factors in relation to pricing of petroleum products and advising the Government on appropriate strategies for dealing with them


• Establishing firm linkages with key segments of the Nigerian society and ensuring that their expectations enjoy the widest possible understanding and support


• Preventing conspiracy and restrictive trade practices that are harmful to the sector


• Playing a mediating role for all stakeholders in the sector


• Performing other functions that the National Assembly may assign from time to time


• Carrying out such other activities that are deemed necessary or expedient

The new Law comes even as President Obasanjo stated during the June edition of his monthly Presidential Chat that prices of petroleum products will go up.

The President had explained that the Federal Government subsidises petroleum products by over N250billion, most of which goes into the pockets of the rich and smugglers.  He added that the Nigerian National Petroleum Corporation (NNPC) has also failed to provide regular supply.  The President thus argued that the subsidies should be channelled into education, agriculture and the provision of other amenities. 

Meanwhile, the PPPRA has met with the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), to convince them of the need for the fuel price increase.  In response, both Unions maintain that workers would react appropriately to such a hike.