The Petroleum Product Pricing Regulatory Agency (PPPRA), on Sunday, insisted that although passage of the Petroleum Industry Act signals the implementation of full deregulation of the downstream sector, there would be no immediate increase in the pump price of Petroleum Motor Spirit(PMS).
This was even as it stated that the PIA which provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities and related matters, marks the beginning of a new era in the growth and development of the entire oil and gas industry.
The agency’s Executive Secretary, Abdulkadir Saidu in a statement signed by him in Abuja said the current price will remain until negotiations with organised labour, which will develop a feasible framework that minimizes the impact of Market-Based pricing policy on the masses is concluded.
“There is no gainsaying that the PIA signals the implementation of full deregulation of the downstream sector. However, it remains worthy of note that the PIA does not automatically translate to any immediate increase in the price of PMS,” the statement partly read.
He further noted that implementation of the PIA will foster greater investment in the sector, lead to transparency and efficient resource management, provide a more consistent standard of operations and ensure less cumbersome regulatory control of the industry, among other gains.
“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,” he noted.
While stressing the longstanding issue of overlapping functions in the regulation of the sector, he said the establishment of the Nigerian Upstream Regulatory Commission (NURC), as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), clearly delineates the roles of industry operators and regulators.
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