Oil Marketers Seek Clarification On Impact Of Subsidy Removal

Oil marketers under the umbrella of the Major Oil Marketers Association of Nigeria (MOMAN) are seeking consultation on the impact of the suspension of fuel subsidy removal on some provisions of the Petroleum Industry Act (PIA).
Gatekeepers News reports that MOMAN says it is currently seeking consultation with the Federal Ministry of Petroleum Resources and other industry stakeholders.

Point News247 reports that the Chairman of MOMAN, Olumide Adeosun, made this known during a press briefing on Monday, January 31, in Lagos.

Adeosun said, ”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.

“This is to understand exactly how this decision would impact the other provisions in the Petroleum Industry Act (PIA) as well as market operations. “

The MOMAN President also pointed out that the reforms contained in the PIA were a combination of several decades of engagement with internal and external stakeholders, incorporating local and international best practices.

According to him, most of the reforms in the PIA are geared towards encouraging investments in the petroleum downstream sector, ensuring transparency, upgrading industry assets and infrastructure (refineries, depots, pipelines, trucks, and filling stations), and optimising costs.

He stated that the direction of MOMAN’s consultation would be towards understanding and contributing towards what market philosophy and regulations should be in place during the 18 months to ensure uninterrupted supply, transparency.

Adeosun added, “This will be in line with long-term objectives for the administration and growth of the industry.’’

The Minister of State for Petroleum Resources, Timipre Sylva, earlier announced that following the decision to suspend the removal of petrol subsidy, the government would also seek an amendment to the PIA in light of the new development.

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