FG blames marketers for petrol price hike

Published By Matthew Atungwu On Aug 1, 2022

FG blames marketers for petrol price hike

The Federal Government Monday insisted that it has not removed subsidy on petrol, saying any price increase may have come from petroleum marketers.

The Minister of State Petroleum Resources, Chief Timipre Sylva told journalists in Abuja at a stakeholders’ consultation forum on regulations organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, that the government still pays subsidies on petrol.

His comments came a month after petrol marketers including government-owned NNPC Limited raised the petrol pump price from government-regulated N165 per litre to N174-N215 per litre.

Speaking on the new regulations being considered for the industry, Chief Sylva said they will provide clarity for the operators and attract investments to the mid and downstream sector.

The Minister who admitted that the energy landscape in the country was in dire state, said the new regulation would clear up the sector for investments.

Speaking earlier, the Authority Chief Executive, Engr. Farouk Ahmed explained that 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 amongst others.

Ahmed explained that these “regulations are integral to the operationalisation 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.

FG blames marketers for petrol price hike