PPPRA reiterates commitment to sustaining downstream sector stability

The Petroleum Products Pricing Regulatory Agency (PPPRA) has reiterated its commitment to ensure the stability in the downstream sector is sustained.

Speaking during a media chat at PPPRA Headquarters in Abuja, the Acting Executive Secretary, PPPRA, Mr Victor Zamani Shidok, stated that the core mandate of the agency is to ensure stability in pricing, loading and distribution of petroleum products across the country.

He said the agency has earned the respect of stakeholders in the sector because prior to the establishment of the agency, people struggled to get products, some lost their lives, products were being diverted to neighboring countries and getting fuel was a nightmare.

However, maintained that after price modulation was introduced, people have continued to enjoy stability and serenity in the product distribution and downstream sector.

“Post-deregulation, we will also ensure this is sustained. Because of the sensitivity of the products, post deregulation still requires mechanism that will monitor pricing. This is being practiced all over the world. We have to prevent marketers from making abnormal profits and ensure that Nigerians are not subjected to price manipulations,” he said.

Recently, the agency began to drive biofuel utilisation in the country, based on the directives of Minister of State for Petroleum Resources, Dr Ibe Kachikwu, who challenged the PPPRA to fast track the development of the National Biofuels Policy and incentive document to provide an enabling environment for the biofuels industry to thrive.

The policy was initiated in 2007, there was no political will to properly articulate and implement the policy. Moreso, the dissatisfaction of stakeholders with the existing gazette on biofuel policy, which is import-dependent and import-driven, added to the neglect of the policy. The gazette, which was roundly rejected by all stakeholders, necessitated a policy review, which is now ongoing and coordinated by the PPPRA.

“In the process of this review, we have ensured that all stakeholders made inputs with a view to ensuring wider acceptability. You will all agree with me that it is important that the emphasis of government on domestic production and self-sufficiency should be the primary focus of all stakeholders, in our quest to develop a pragmatic biofuels policy for the nation. However, with the relentless efforts of the Minister of State for Petroleum Resources, Dr Kachikwu, this administration has decided to give the biofuels a new impetus to enable Nigeria and Nigerians enjoy the benefits derivable therein,” Shidok stated.

He said biofuels as a source of energy, when fully adopted, would create employment opportunities, support agricultural development and can as well be used to generate electricity.

“Other benefits of biofuels include being environmentally friendly, less pollution, cheaper as well and will become a good foreign exchange earner. Biofuels simply comprise bio-ethanol and bio-diesel, which are blends of petroleum products and agricultural products. Bio-ethanol E-10, for instance, is a blend of 90 per cent gasoline and 10 per cent ethanol, while bio-diesel B-20 is a blend of 80 per cent diesel and 20 per cent oil from Jathropha, used palm oil, among others. This harmony will lead to more job creation in the petroleum and agricultural sectors of our economy.

“A lot more advantages accrue from this industry, which offers an alternative to fossil fuel thus providing cleaner and cheaper energy. In fact, it is the new economy of Nigeria. That is where the world is going and Nigeria cannot be left out. It is worthy of mention that this great initiative is being undertaken in conjunction with the Ministry of Petroleum Resources, Nigerian National Petroleum Corporation (NNPC), state and Federal Government, ministries and other stakeholders, which include feedstock farmers, blenders, depot owners and potential investors. No matter how laudable government initiatives are, they cannot enjoy good success without the buy-in of the people for whom such policies are designed in the first place,” he said.