How often would prices be reviewed and how would the price ceiling operate?
Prices will adjust depending oh the prices of the new deliveries. In practice, this would normally ‘be quarterly and the OMCs will be given the right to set retail prices according to a prescribed formula without prior review or! approval by any national authority or agency. In the initial phase, the NPA will set the integrated distribution margin to comparable levels within the West African sub-region with a view to promoting competition in the marketing and retailing of petroleum products. Each OMC will have to set Its margin within the maximum margin allowed by the NPA in the initial phase, which will end by December 2005. The ceiling would be determined as and when quarterly tenders are held.
