It was, however, quick to state that the negotiations
between the Federal Government and labour would minimise the effect of subsidy
removal upon full deregulation of the sector.
The Executive Secretary, PPPRA, Abdulkadir Saidu, who said
this in a statement issued in Abuja, stated that petrol price would be adjusted
in a way that it would not cause hardship on consumers.
He said, “There is no gainsaying that the PIA signals the
implementation of full deregulation of the downstream sector.
“However, it remains worthy of note that the PIA does not
automatically translate to any immediate increase in the price of PMS.
“The current price will remain until negotiations with
organised labour, which will develop a feasible framework that minimises the
impact of a market-based pricing policy on the masses, is concluded.”
Saidu said the PIA had provided legal, governance,
regulatory and fiscal framework for the Nigerian petroleum industry, the
development of host communities and related matters.
He said the Act marked the beginning of a new era in the
growth and development of the entire oil and gas industry.
“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,” Saidu
stated.
He pointed out that the implementation of the PIA would
provide a more consistent standard of operations and ensure less cumbersome
regulatory control of the industry, among other gains.
He said, “The PPPRA especially commends 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 added that the establishment of the Nigerian Upstream
Regulatory Commission, as well as the Nigerian Midstream and Downstream
Petroleum Regulatory Authority, clearly delineated the roles of industry
operators and regulators.