On Sunday, the Petroleum Products Pricing Regulatory Agency stated that the Petroleum Industry Act foreshadowed the complete deregulation of the downstream oil sector.
It was quick to point out, however, that the agreements between the Federal Government and labour would minimize the impact of subsidy elimination on full sector deregulation.
Abdulkadir Saidu, Executive Secretary of the PPPRA, stated in a statement issued in Abuja that the petrol price will be modified in such a way that it would not create hardship to consumers.
He said that the PIA signals the implementation of full deregulation of the downstream sector, adding that the PIA does not automatically translate to an immediate increase in the price of PMS.
“The current price will remain until negotiations with organized labour, which will develop a feasible framework that minimizes the impact of a market-based pricing policy on the masses, is concluded”.
According to Saidu, the PIA provides a legal, governance, regulatory, and fiscal framework for the Nigerian petroleum industry, host community development, and other associated matters.
He believes that the Act will usher in a new era of growth and development for the petroleum industry as a whole.
“Delivering on the promise to create an environment with a transparent, clear and robust legal and regulatory regime is sure to open up new vistas in the oil and gas industry, and the Nigerian economy,” Saidu stated.
He emphasized that, among other benefits, implementing the PIA would give a more consistent standard of operations and less burdensome regulatory oversight of the business.
The PPPRA notably commends the Federal Government for taking the bold step of eliminating longstanding stumbling blocks such as the issue of overlapping functions in the sector’s regulation,” he said.
The formation of the Nigerian Upstream Regulatory Commission, as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority, clearly defined the roles of industry operators and regulators, according to Saidu.