We’ll consult on suspension of subsidy removal – MOMAN

The Major Oil Marketers Association of Nigeria (MOMAN) says it is currently seeking consultation with the Ministry of Petroleum Resources and other industry stakeholders on the suspension of the removal of petrol subsidy.

Mr Olumide Adeosun, Chairman, MOMAN, made this known while briefing newsmen on Monday in Lagos.

Our correspondent reports that Hajia Zainab Ahmed, Minister of Finance, Budget and National Planning, had announced that the government would no longer go ahead with its earlier plans to remove subsidy on Premium Motor Spirit in July 2022.

Adeosun said: ”The members of the association are currently seeking to consult with the Ministry of Petroleum Resources, the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other industry stakeholders.”

“This is to understand exactly how this decision would impact the other provisions in the Petroleum Industry Act (PIA) as well as market operations.”

He noted that the reforms contained in the PIA were a combination of several decades of engagement with internal and external stakeholders, capturing local and international best practices.

According to him, this is to encourage investments in the petroleum downstream sector, optimise costs, ensure transparency, and upgrade industry assets and infrastructure (refineries, depots, pipelines, trucks, and filling stations).

Adeosun said the direction of MOMAN’s consultation would be towards understanding and contributing towards what market philosophy and regulations should be in place during the 18-month period to ensure uninterrupted supply, transparency.

“This will be in line with long-term objectives for the administration and growth of the industry,” he added.

Recall that the Minister of State for Petroleum Resources, Timipre Sylva, had said after the decision to suspend removal of petrol subsidy was announced that the government would also seek an amendment to the PIA in light of the new development.