The Major Oil Marketers Association of Nigeria (MOMAN) has said that it is seeking further clarification from the federal government and other top government functionaries to understand how the decision to extend the removal of petrol subsidy in the next 18 months would impact the other provisions in the Petroleum Industry Act (PIA) as well as their businesses.
MOMAN Chairman, Olumide Adeosun said at a media briefing in Lagos on Monday that although oil marketers had met with the Minister of State for Petroleum Resources, Timipre Sylva, they considered it necessary to meet with concerned top government functionaries that could throw more lights on the planned N3trillion subsidy payment for 2022 as well as the extension of subsidy removal implementation by 18 months.
“The members of the association are currently seeking to consult with the Ministry of Petroleum Resources, the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other industry stakeholders to understand exactly how this decision would impact the other provisions in the Petroleum Industry Act as well as market operations.
“We actually want to understand how this decision would impact the other provisions in the Petrol”, Adeosun said.
He added: “Recall, that the reforms contained in the PIA are a combination of several decades of engagement with internal and external stakeholders, capturing local and international
best practices to encourage investments in the petroleum downstream sector, optimize costs, ensure transparency, and upgrade industry assets and infrastructure (refineries,
depots, pipelines, trucks, and filling stations).
“The decision having been taken to suspend subsidy removal, the direction of our consultation necessarily would be towards understanding and contributing towards
what market philosophy and regulations should be in place during the 18-month period to ensure uninterrupted supply, transparency.
“This will be in line with long-term objectives for the administration and growth of the industry.”
Following the public outcry that greeted government’s plan to remove petrol subsidy in June this year, the federal government extended the subsidy removal implementation period by 18 months.
The fuel subsidy regime was supposed to come to an end in February this year, going by the PIA
But Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, told journalists in Abuja that government would engage the legislature for the amendment of the PIA.
She also announced that the Nigerian National Petroleum Corporation Ltd said N3trillion would be required for subsidy payment for 2022.