The recent decision of the APC led Federal government to deregulate the downstream Oil sector a day after stakeholders called for complete deregulation has elicited reactions from stakeholders, including the former Vice president of Nigeria, Atiku Abubakar.
The stakeholders, Major Oil Marketers of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), had requested for a pricing plan formula that will allow a seamless and market-determined price of premium motor spirit, otherwise known as petrol.
Oyetunji Oyebanji, president of MOWAN, had said, “The downstream end of Nigeria’s oil industry requires significant investment to improve service delivery and to generate employment, help in expanding and growing the economy, and so it needs full and total deregulation with appropriate standards and regulation in terms of consumer protection.
“We are all interested in the future of the country as stakeholders. But we need to make the right policy decisions at the appropriate time. Nigeria cannot, as we know, continue to subsidize fuel.
“Over the last 15 years, we have spent close to N10tn subsidizing fuel. This is just unsustainable in this environment, and I think posterity will not judge us properly if we do not make the right decisions.”
The government Thursday announced that oil marketers can now determine the price they will sell oil, thereby acceding to an age-long agitation by some stakeholders who want deregulation of the sector. But the government will continue to monitor and regulate the commodity market.
This was contained in a document released by the Petroleum Products Pricing Regulatory Agency, PPPRA, and signed by its Executive Secretary, Mr. Abdulkadir Saidu.
According to the PPPRA, “In exercise of the powers conferred on it by Sections 7 and 24 at the Petroleum Products Pricing Regulatory Agency (Establishment) Act. No. 8 of 2003, and all other powers enabling it in that behalf, the Petroleum Product Pricing Regulatory Agency (The Agency), with the approval of the President hereby makes the following Regulation:
“Short title: Market Based Pricing Regime for Premium Motor Spirit (PMS) using the Pricing Template of the Petroleum Products Pricing Regulatory Agency.
“The price cap per liter in respect of Premium Motor Spirit (PMS) is removed from the commencement of these Regulations. From the commencement of these Regulations, a market-based pricing regime for Premium Motor Saint (PMS) shall take effect.
“The Agency shall monitor market trends and advise the NNPC and oil marketing companies on the monthly guiding Market-Based Price.
“The price of Premium Motor Spirit (PMS) advised by the Agency shall be guiding retail price at which the product shall be sold across the country.
“This regulation may be cited as the Premium Motor Spirit (PMS) Market Based Pricing Regime Regulations, 2020, made this 20th day of March 2020.”
But Atiku Abubakar, reacting to the news, said it is a welcome development.
“FG finally withdraws from the fuel subsidy and price-fixing bazaar that had been rife with corruption and stalling investments. This is something patriots have been calling for and for which I was demonized”, he wrote on his verified Twitter handle, @atiku.
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