The Minister of State for Petroleum Resources, Chief Timipre Sylva, has reiterated that the federal government is no longer fixing the pump price of petroleum products in the country.
Sylva made this known while briefing newsmen on the increase in the pump price of Premium Motor Spirt (PMS), also known as petrol.
Recall that the Petroleum Products Marketing Company (PPMC) had on Wednesday announced a new Ex-depot price of N151.56 for petrol.
Ex-depot price is the price marketers buy products from depot owners.
An increase or decrease in ex-depot price has effect on the pump price of petrol.
“Government is no longer in the business of fixing prices for petroleum products, we have stepped back.
“Our focus now is on protecting the interest of the consumers and making sure that marketers are not profiteering,”he said.
Sylva said it was unfortunate that people were blaming government, noting that the deregulation of the sector was imperative for the economy.
He said that it was also a consensus among stakeholders for such strong policy direction.
According to him, the well-being of Nigeria remains paramount to government.
“You all know that that President Muhammadu Buhari aligns with ordinary Nigerians, especially the poor.
“Left for him, he will never allow increase in pump price; for this to happen, it means that it is an inevitable decision.
“COVID-19 took the price of crude oil to zero zone,” the minister said.
He said that government cannot fund subsidy, hence would not adopt that as an option, noting that current happenings were for the economic survival of the country.
Sylva said that government had cut crude production from two million barrels to 1.412 million barrels per day.
This, he said, was affecting revenue generation in the country.
He said that it was unfortunate that the deregulation of the sector was politicised, urging Nigerians not to listen to any advocacy for subsidy payment.
“Deregulation will definitely come with few pains, but survival of the country is paramount,” he said.
TO INAUGURATE USE OF CNG, LPG IN OCTOBER
The Federal Government will in October inaugurate the use of Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) for motorist as alternative to use of petrol in the country.
Chief Timipre Sylva, the Minister of State for Petroleum Resources, made this known while briefing newsmen in Abuja on Thursday.
Compressed Natural Gas (methane stored at high pressure) is fuel that can be used in place of gasoline, diesel fuel and liquefied petroleum gas.
He said that introduction of CNG, LPG and others would help to reduce the impact of the high cost of premium Motor Spirit (PMS) also known as petrol on Nigerians.
He said that since the Federal Government was no longer in the business of fixing the price of petroleum products, its focus was to protect the interest of Nigerians.
He said that CNG and LPG was cheaper, cleaner and globally accepted.
“The solution to reduce the pains with increase in petrol is to create another source that is cheaper, cleaner and global friendly.
“Introducing LPG, CNG is creating a toll gate and alternative route for people that may not be comfortable to have a choice.
“The introduction of the new products will be cheaper and better, in the end Nigerians will be happy for it,” he said.
On how it will be rolled out across the country, he said that all the Nigerian National Petroleum corporation (NNPC) petrol stations would be used for the project.
He said that an LPG and CNG skid to dispensed the products would be fixed in all the NNPC stations across the country.
He said some private marketers had also requested to be admitted in the programme.
“Going forward, Department of Petroleum Resources (DPR) will request marketers to upgrade their station to accommodate LPG and CNG or their licenses will not be reviewed,” he said.
Sylva said that the introduction of the alternative products would help in creating jobs, especially with conversion of cars with LPG and CNG kits.
He said that a company had approached Nigeria for establishment conversion centre in the country.
“I believe that with time, people will start importing cars that use LPG, CNG among others. Conversion of cars to use the products will be for a few period,” he said.
PEF, PPPRA TO BE MERGED IN NEW PIB
Chief Timipre Sylva, the Minister of State for Petroleum Resource, says two regulatory bodies in the oil and gas sector will be merged as one regulator in the new Petroleum Industry Bill (PIB).
Sylva disclosed this while briefing newsmen in Abuja on Thursday.
The two agencies are Petroleum Equalisation Fund (PEF) and Petroleum Products Pricing Regulatory Agency (PPPRA).
He said that the two would be merged under the name: “The Authority” as regulator in the industry.
He said that the agencies would still be relevant to serve as regulators in the industry, noting that without PPPRA and PEF, it would be difficult to deal with profiteers.
” PEF and PPPRA will emerge as one under a name The Authority’ and will be helping to police the pump price of petrol so that nobody will profiteer,’’ he said.
The News Agency of Nigeria (NAN) reports that while PEF deals equalisation of petroleum products to ensure price uniformity, PPPRA deals with petroleum products pricing and monitoring of compliance.
