Petroleum Products Pricing Regulatory Agency (PPPRA) has dismissed rumoured increase of the price of petroleum products by the Federal Government following last week’s signing into law of the Petroleum Industry Act (PIA) by President Muhammadu Buhari.
Executive Secretary of PPPRA, Mr Abdulkadir Saidu, who disclosed this in a statement in Abuja, Sunday, maintained that the implementation of the Petroleum Industry Act (PIA) would not translate into an automatic increase in the pump price of petrol in the country.
“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 current price will remain until a negotiation with organised labour; which will develop a feasible framework that minimises the impact of a Market-Based pricing policy on the masses; is concluded.
“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.
“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, as well as Nigeria’s economy,’’ Saidu said.
He added that the implementation of the PIA would foster greater investment in the sector.
“It will also 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,” he added.
The PPPRA chief also commended the Federal Government for taking the bold step at resolving longstanding hitches such as the issue of overlapping functions in the regulation of the sector.
Saidu said that 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.
It would be recalled that President Buhari on August 16, this year assented to the Petroleum Industry Bill (PIB) making it into a law, while also constituting a steering committee for immediate implementation of the Act chaired by the Minister of State for Petroleum Resources, Chief Timipre Sylva.