Oil subsidy: Oil Marketers state their expectations in 18 months leading to removal of subsidy

Looking at the current state of the nation’s oil and gas sector and the challenges surrounding subsidy, the Major Oil Marketers Association of Nigeria (MOMAN) has said that it is seeking further engagement with the Federal Government and other top government functionaries to understand exactly how the decision to extend the removal of subsidy in the next 18 months would impact the other provisions in the Petroleum Industry Act as well as market operations.

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

It would be recalled that recently the Minister of Finance, Budget and National Planning, Hajia Zainab Ahmed 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 said even though they have met with the Minister of State for Petroleum Resources, Timipre Sylva, the association still want to meet with concerned top government functionaries that could throw more lights around the planned N3 trillion Subsidy payment as well as the shift in the implementation of the end of fuel subsidy.

When asked what the group would be doing for the next 18 months which was the period when the government would decide to remove the subsidy, he said MOMAN has resolved to continue to engage the government on this critical issue.

“The Major Oil Marketers Association of Nigeria has been approached by members of the press seeking its reaction with respect to the suspension of subsidy removal.

Also, “Recall, that the reforms contained in the PIA are a combination of several decades of engagement with internal and external stakeholders, capturing local and international best practices to encourage investments in the petroleum downstream sector, optimize costs, ensure transparency, and upgrade industry assets and infrastructure (refineries, depots, pipelines, trucks, and filling stations).

“The decision having been taken to suspend subsidy removal, the direction of our consultation necessarily 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.