Between 1974 And 1975
Between 1974 and 1975, most petrol service stations nationwide had been characterized by lengthy queues on account of frequent extreme shortages of petroleum merchandise. The issue was compounded by the haphazard manner marketers priced the product on the basis of transportation value incurred by them. In an effort to resolve the issue, wti crude oil price chart history the Federal Authorities set up an inter-ministerial committee comprising of the then Ministries of Mines and Power, and Transport, the Nigerian Ports Authority, the Nigerian Railway Company and the Petroleum Products’ Marketers to examine the state of affairs and make applicable suggestions.
The committee noticed that the one variable component in the availability and the sale of petroleum merchandise at uniform value nationwide was the transportation cost. It therefore, blamed the limited local refining capacity and inadequate distribution services for the problem. In keeping with the advice of the committee, Government introduced the Uniform Pricing System. In cognizance of the inequality within the transportation price of distributing products all through the country, the Petroleum Equalization Fund (Management) Board was established. Refinery The Fund which was established by Decree No. 9 of 1975 (as amended by Decree No. 32 of 1989) was charged with the primary responsibility of reimbursing petroleum advertising corporations wti crude oil price chart history for any losses suffered by them, solely and exclusive, as a result of sale of petroleum products at uniform costs throughout the nation.
The legislative Charter of the Board as supplied by Decree No9 of 1975 as amended by Decree No. 32 of 1989 (now Chapter 352 of the Legal guidelines of the federation 1990) are:-
To ensure that the Uniform Pricing Mechanism works successfully throughout the nation. To use the legal guidelines of the Federal Republic of Nigeria as they affect the Uniform Pricing System, vis-a-vis diploma No. 9 of 1975 (as amended by Decree No. 32 of 1989), establishing the Fund and the Board, in guaranteeing that every current advertising and marketing firm complies with the legal guidelines wti crude oil price chart history relating to the administration of the transportation equalisation process. To equalise the transportation differentials within the white product marketing.