Lagos – Stakeholders in the Oil and Gas Industry on Wednesday commended the Federal Government for the new pump price template for petrol and appealed for total deregulation of the downstream sector.
The stakeholders, in separate interviews with the News Agency of Nigeria (NAN) in Lagos, said the new pump price template was a welcome development.
NAN reports that the Federal Government on Dec. 29 announced a further reduction in the pump price of Premium Motor Spirit (PMS), otherwise known as petrol from N87 to N86.50 per litre,with effect from Jan. 1, 2016.
The Chairman, Independent Petroleum Marketers Association of Nigeria (IPMAN) Western Zone, Alhaji Ahmed Dabo, said that the pump price reduction was a welcome development.
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He said it was a good intention exhibited by government.
According to him, government still has a large control of the depot, while marketers would adjust to whatever price they instituted.
“We at IPMAN believe that total deregulation remains the best option in addressing the downstream sector.
“What we are interested in, is availability of the product. Government should ensure adequate importation of the product,’’ Dabo said.
The Managing Director, Integrated Oil and Gas Ltd., Capt. Emmanuel Iheanacho, said that “deregulation remains a great solution to a lot of problems and not just a solution to energy distribution problems’’.
Iheanacho said that deregulation was also a solution to the economic problems confronting the nation.
He explained that a lot of resources were tied up in the subsidy and the subsidy benefits were not necessarily going to a lot of poor people.
According to him, the subsidy has been with those who can pay the full price of the petroleum product.
“I really do not see the rational for continuing to deny government of the resources needed to develop the country.
“Subsidy is not meant for poor, because it does not get to the poor.
“On the new Petroleum Product Pricing Regulatory Agency (PPPRA) template, I cannot comment on it, because I need to study it before I can comment.
“When you talk of template, a lot of discussions and rational should be studied before making comments,’’ Iheanacho said.
The South-West Chairman of NUPENG, Alhaji Tokunbo Korodo, said that the reduction in the price of petrol was a welcome development.
Korodo urged the Department of Petroleum Resources (DPR) to ensure total compliance with the new directive by all filling stations and private depots in 2016.
“Nigerians will embrace and love the present administration more if they can do more on the reduction.
“Nothing should stop them (government) from continuing to reduce the price gradually,’’ he said.
Korodo described the reduction as “a New Year gift’’ to Nigerians for their sufferings at the filling stations during Christmas period.
He said that the government meant well for the country despite the attitude of greedy“ cabals’’ who were trying to frustrate its genuine intentions.
The National Operation Controller of IPMAN, Mr Mike Osatuyi, urged the government to enforce total deregulation of the downstream sector.
Osatuyi said that the review of the template was subject to improvement in crude oil pricing. (NAN)
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