Fuel Price Remains Until Federal Government, Labor End Negotiations

  The Executive Secretary Abdulkadir Saidu of Petroleum Products Pricing Regulatory Agency (PPPRA) which is a government agency that regulates the price of petroleum products said on the 19^th August 2021 that the Petroleum Industry Act has signaled the full deregulation of the downstream oil sector. The agency was quick to state that the negotiation between the Federal government and Labor would minimize the effect of subsidy removal upon the deregulation of the sector.

Mr Saidu stated that the petrol price will be adjusted in a way that will not cause hardship on consumers, he also stated that it was important to note that this doesn’t automatically mean that they will be an increase in price. The current price will not change until negotiations with organized labor, which will develop a feasible framework that minimizes the impact of a market-based pricing policy on the masses, is concluded. Mr 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 claimed that the Act represented the start of a new era in the oil and gas industry’s growth and development.

Delivering on the promise of creating a transparent, clear, and robust legal and regulatory framework will undoubtedly open up new vistas in the oil and gas industry, as well as the Nigerian economy, Saidu remarked. He noted that, among other things implementing the PIA will ensure a more consistent standard of operations and less burdensome regulatory management of the business. In regards to the pricing of AGO/PMS/DPK these hinges on the fact that an increase in prices is imminent and is only a matter of time. The Petroleum Products and Pricing Regulatory Agency (PPPRA) has aluded to that fact, and the FG and Labor meetings are been held on how to cushion the harsh effects it will have on Nigerians. It’s pertinent to note that with the signing of the Petroleum Industry Bill (PIB) into law, it signals the full deregulation of the downstream oil sector henceforth leaving the market forces to determine the prices of Petroleum products.