The Federal Government on Monday insisted that it had not raised the pump price of Premium Motor Spirit, commonly referred to as petrol, above the regulated cost of N165/litre.
It stated that oil marketers had hiked the cost of the commodity, currently between N175/litre and N230/litre, depending on the location of purchase. The government, however, could not explain why it was not enforcing the approved price.
Oil marketers across the country recently raised the price of petrol above the approved N165/litre rate without obtaining any official government approval, despite the cost of commodities still being regulated.
The marketers had argued that the N165/litre approved price was not sustainable and was contributory to the scarcity of petrol in many locations nationwide.
They eventually hiked the pump price of petrol and maintained the increase for several weeks without any resistance from the government.
Speaking on the sidelines of the stakeholders’ consultation forum on Midstream and Downstream Petroleum Regulations organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja, the Minister of State for Petroleum Resources, Chief Timipre Sylva, insisted the government had not raised the price of PMS.
Asked to comment on the price disparity in the petrol pump and why the government had not waded into the matter, the minister said, “Well, I can tell you authoritatively that we have not deregulated.
“The government is still subsidising, if there are increases in the price, it is not from the government, it is probably from the marketers.
“But, of course, I will talk to the NMDPRA’s chief executive to ensure that they actually regulate the prices. But this is not from the government because we have not deregulated.”
Probed further to explain why no action had been taken against the marketers and why there had been no monitoring exercise to enforce the government-approved price, Sylva replied, “Well, I don’t know about monitoring exercise.
“But I know that the authority is fully on their job and the queues will be dissipated very soon.”
Regarding the forum’s essence, Farouk Ahmed, the Chief Executive of NMDPRA, stated that the programme complies with the Petroleum Industry Act’s requirement for stakeholder participation in creating regulations that affect them.
He said, “Section 216 of the PIA mandates the authority to ‘consult with stakeholders before finalising any regulations or amendments to regulations’.
“However, we do not consider this an obligation or box-ticking exercise as continuous engagement with our stakeholders to enable their business is at the core of our regulatory philosophy.”
Ahmed said the regulator had so far published and received significant feedback on the 10 regulations to be considered, as he outlined the pm to include the Petroleum (Transportation and Shipment) Regulations; Assignment and Transfer of Licence and Permit Regulations; and Midstream and Downstream Petroleum (Operations) Regulations.
Others include the Petroleum Pipeline Regulations; Gas Pricing Domestic Demand and Delivery Regulations; Natural Gas Pipeline Tariff Regulations; and Midstream and Downstream Decommissioning and Abandonment Regulations.
He named the remaining regulations as the Environmental Regulations for Midstream and Downstream Operations, Midstream and Downstream Gas Infrastructure Fund Regulations, and Environmental Remediation Funds Regulations.
Ahmed assured industry stakeholders that their input on the regulations during the forum would be taken seriously, adding that the aim was to grow the Nigerian oil sector.
