. Insists fuel subsidies still in place
The Federal Government says it has not removed subsidies on the premium motor spirit (PMS), widely known as petrol, while blaming petroleum marketers for the current pump price increases.
The explanation follows pump price increases from government regulated N165 per litre to between N174 and N218 per litre in the recent weeks depending on the outlet and location.
The Minister of State for Petroleum Resources, Timipre Sylva, said this yesterday while speaking with journalists on the sidelines of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stakeholders’ consultation forum on regulations, in Abuja.
He said: “I can tell you authoritatively, we have not deregulated. The government is still subsidizing (petrol price). If there are increases in price, it is not from the government; it’s probably from the marketers.
But of course, I will talk to the Authority to ensure that they actually regulate the price. This is not from the government, we have not deregulated.
“But a lot is going on to ensure that the queues end. As of yesterday, I noticed that the queues in Abuja are easing off.”
I can tell you authoritatively, we have not deregulated. The government is still subsidizing (petrol price). If there are increases in price, it is not from the government; it’s probably from the marketers.
Industry regulation
The consultative forum was organised by the NMDPRA to consider and review the midstream and downstream petroleum regulations to bequeath the industry with laws and policies to attract the needed investment into the sector.
Sylva, who said this will provide clarity for the operators and attract investments to the mid and downstream sector, also admitted that Nigeria’s energy landscape was in dire state, and the new regulation would clear up grey areas to attract investments.
He continued: “This administration understands the need to have an all-encompassing, well thought out and unambiguous regulatory instrument that is painstakingly developed to meet present and future aspirations of government.
“This is required to attract much needed investments and create opportunities in the sector. Hence the need for stakeholders participation and engagement developing the regulations, processes and procedures.
“Whilst noting that the current state of our local energy landscape is dire and is in need of ingenious solutions, we have an opportunity to ameliorate the situation through these sets of regulations.
“I am privy to the overall intent of these regulations, which are to provide clarity and certainty for investors, promote and build investor confidence, increase and improve foreign and indigenous participation in these sectors, and optimize value for all our stakeholders. These will culminate into enablement of businesses, growth of the industry and creation of myriads of opportunities for Nigerians.”
We are resolved that our policies will enable investment and ease of doing business, create employment opportunities for Nigerians and prevent undue burdens on our partners.
Earlier, the Authority Chief Executive, Farouk Ahmed, said the consultation was in line with the mandate of the Petroleum Industry Act (PIA) 2021, which ordered that stakeholders must be consulted before any regulations are made.
The new regulations address issues like petroleum transportation and shipment, licenses and permits, gas pricing for domestic market, gas pipeline tariff, the environment, as well as the gas infrastructure fund and a host of others.
Ahmed said: “the regulations are integral to the operationalization of the PIA, and require our collective commitment over the next few days. We are resolved that our policies will enable investment and ease of doing business, create employment opportunities for Nigerians and prevent undue burdens on our partners.
“Accordingly, our priority will be to ensure these regulations are primary enablers of the Federal Government’s Decade of Gas initiative and will help catalyse investment and enhance the attractiveness of the domestic gas value chain.
“We are also conscious of the fact that effective regulation must, amongst many outcomes, ensure fairness, equity, transparency, and certainty for all players in the regulatory space.”
