By Idu Jude
The petroleum product price regulatory agency PPPRA has called for support of the administration of Mohammadu Buhari for the courage in instituting the Petroleum Industrial act. PIA provides a legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, for the development of host communities and related matters.
The agency in a release, signed by its Executive Secretary Abdulkadir Saidu Sunday, said that the effort marks the beginning of a new era in the growth and development of the entire oil and gas industry. Such is said is for the 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.
It also said the implementation of the PIA will foster greater investment in the sector. It will also lead to transparency and efficient resource management, provide a more consistent standard of operations and ensure less cumbersome regulatory control of the industry, among other gains.
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. The establishment of the Nigerian Upstream Regulatory Commission (NURC), as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), delineates the roles of industry operators and regulators.
“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 an immediate increase in the price of PMS. The current price will remain until negotiations with organised labour, which will develop a feasible framework that minimizes the impact of a Market-Based pricing policy on the masses is concluded.