By Uche Mbah
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.
