FG rules out total deregulation of downstream oil sector

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The Federal Government on Thursday announced that it had ruled out the total deregulation of the downstream oil and gas sector so as not to raise the pump price of Premium Motor Spirit, popularly known as petrol, The Punch reports.

It noted that any attempt to enforce a total deregulation of the sector would lead to an increase in the prices of petroleum products, adding that it was aware of the severe consequence that this would have on Nigerians.

Speaking at the 2017 African Modular Refinery Discussion organised in Abuja by the Modular Refineries Association of Nigeria, Acting President Yemi Osinbajo, noted that despite calls for the complete deregulation of the downstream oil sector, the government would not do so but would continue to moderate activities in the industry.

He said, “There are those who are saying we need to deregulate fully. Why are they saying that? It is because if we do not deregulate, it is not cost-effective for those who are producing PMS to sell. At the same time, if you deregulate completely, prices of everything will go up. So there are those complications, meaning we have got to moderate all those things.”