Recently the federal government stopped its planned withdrawal of subsidy on petrol, an action that has generated a lot of heat.
In view of this development, a critical stakeholder, the Major Oil Marketers Association of Nigeria (MOMAN) has indicated interest in meeting key agencies of government to seek clarification on how the continued subsidy regime would affect the implementation of the Petroleum Industry Act (PIA).
Addressing the media in Lagos on Monday, Olumide Adeosun, MOMAN Chairman, said the association has perfected plans to meet with the Ministry of Petroleum Resources, the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other industry stakeholders to understand exactly how the decision of the Federal Government to maintain fuel subsidy for the next 18 months, would impact the other provision in the PIA and other market operations.
Mr Adeosun noted that the reforms contained in the PIA are a combination of several decades of engagement with internal and external stakeholder, capturing local and international best practices.
“The reforms is meant to encourage investment in the petroleum downstream sector, optimise costs and ensure transparency and upgrade industry assets and infrastructure (refineries, depots , pipelines, trucks and filling stations), he said.
The MOMAN Chairman disclosed that since the Federal Government has decided to suspend the subsidy removal, the association will engage ministry, stakeholders and relevant government agencies in understanding and contributing towards what the market philosophy of the decision.
He further stated that MOMAN is seeking to understand the regulation that should be put in place during the 18- months period to ensure that uninterrupted supply, transparency and the long-term objectives for the administration and growth of the industry.
Mr Adeosun, who is also the Chief Executive Officer, Ardova Plc, however disclosed that the marketers will come up with a position once the clarity has been achieved.