Sunday, April 2

Major oil marketers to consult on impact of suspension of fuel subsidy removal on PIA

Oil marketers under the aegis of Major Oil Marketers Association of Nigeria (MOMAN) say it is currently seeking consultation with the Federal Ministry of Petroleum Resources and other industry stakeholders on the impact of the suspension of fuel subsidy removal on some provisions of the Petroleum Industry Act (PIA).

This was made known by the Chairman of MOMAN, Mr Olumide Adeosun, during a press briefing on Monday January 31, in Lagos.

What the Chairman of MOMAN is saying

Adeosun in his statement said, ”The members of the association are currently seeking to consult with the Ministry of Petroleum Resources, the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other industry stakeholders.

“This is to understand exactly how this decision would impact the other provisions in the Petroleum Industry Act (PIA) as well as market operations.

According to NAN, Adeosun pointed out that the reforms contained in the PIA were a combination of several decades of engagement with internal and external stakeholders, incorporating local and international best practices.

He said that most of the reforms in the PIA is geared towards encouraging investments in the petroleum downstream sector, optimizing costs, ensuring transparency, and upgrading industry assets and infrastructure (refineries, depots, pipelines, trucks, and filling stations).

Adeosun said the direction of MOMAN’s consultation would be towards understanding and contributing towards what market philosophy and regulations should be in place during the 18-month period to ensure uninterrupted supply, transparency.

He added, “This will be in line with long-term objectives for the administration and growth of the industry.’’

Recall that the Minister of State for Petroleum Resources, Timipre Sylva, had said after the decision to suspend removal of petrol subsidy was announced that the government would also seek an amendment to the PIA in light of the new development.

In case you missed it

  • Recall that about a week ago, the Federal Government announced the postponement of the take-off of the fuel subsidy removal policy till further notice.
  • The Minister of Finance, Budget and National Planning, Zainab Ahmed, who made the announcement, attributed the postponement of the implementation of the policy to bad timing due to heightened inflation, need for rollout of existing refineries and new ones to reduce the volume of products imported into the country, further consultations with stakeholders, among others.
  • Also, the Minister of State for Petroleum Resources, Timipre Sylva, had during a special briefing of State House correspondents by the Presidential Communications Team, said that the federal government has proposed an 18 months extension of the implementation of the fuel subsidy removal policy.
  • He revealed that government has concluded plans to approach the National Assembly to amend the Petroleum Industry Act (PIA).