PIA signals implementation of full deregulation of downstream sector – PPPRA

PIA signals implementation of full deregulation of downstream sector – PPPRA

By Eloyi Matthew

The Petroleum Products Pricing Regulatory Agency (PPPRA) on Sunday said the Petroleum Industry Act (PIA) had signalled the full deregulation of the downstream oil sector.

The agency was, however, quick to state that the negotiations between the Federal Government and labour would minimise the effect of subsidy removal upon full deregulation of the sector.

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The Executive Secretary of PPPRA,  Mr Abdulkadir Saidu, who said this in a statement issued in Abuja, stated that the petrol price would be adjusted in a way that would not cause hardship on consumers.

In his words, “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 an immediate increase in the price of PMS.

“The current price will remain until negotiations with organised labour, which will develop a feasible framework that minimises the impact of a market-based pricing policy on the masses, is concluded.”

Saidu said the PIA had provided legal, governance, a regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities and related matters.

He said the Act marked the beginning of a new era in the growth and development of the entire oil and gas industry.

Mr Saidu pointed out that the implementation of the PIA would provide a more consistent standard of operations and ensure less cumbersome regulatory control of the industry, among other gains.

PIA signals implementation of full deregulation of downstream sector – PPPRA