PIA: FG, labour negotiate to minimise effects of subsidy removal – PPPRA

Following the enactment of the Petroleum Industry Act (PIA), the Petroleum Products Pricing Regulatory Agency (PPPRA), Executive Secretary, Abdulkadir Saidu said the ongoing Federal Government’s negotiation with Labour on subsidy removal, will develop a feasible framework that minimises the impact of a market-based pricing policy on the masses.

He said in a statement at Abuja that the PIA signals the implementation of full deregulation of the downstream sector. He further emphasized that it remains worthy of note that the PIA does not automatically translate to any immediate increase in the price of PMS.

The head of PPPRA, Mr Saidu, has hinted that the current market price will remain as it is until the completion of talks with the trade unions in order to minimise the impact of a market-based pricing policy on the masses. The agency 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 mentioned that the PIA, which provides legal, governance, regulatory and fiscal framework for the 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.

He noted that 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, and the Nigerian economy and that the implementation of the PIA will foster greater investment to the sector.

The establishment of the Nigerian Upstream Regulatory Commission (NURC) as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will clearly outline the roles of industry operators and regulators.