PPPRA Vows to Sanction Profiteers

Fri, Mar 10, 2017 | By publisher


Energy Briefs

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THE Petroleum Products Pricing Regulatory Agency, PPPRA, is to sanction oil marketers who exploit motorists and other consumers. Victor Shidok, acting executive secretary, PPPRA, said the agency would not allow long queues at filling stations because of speculations that pump prices may be raised.

The agency will ensure effective monitoring of products’ distribution and compliance with pricing template, he said, urging Nigerians not to be disturbed by speculations on deregulation since the agency would deal with dubious marketers.

The PPPRA chief lamented the loss of lives resulting from scarcity due to diversion, adulteration and storage of fuel at homes. According to him, since the PPPRA was established 16 years ago, Nigeria has not witnessed the perennial scarcity of petroleum products apart from occasional hiccups from supply challenges. In distribution, PPPRA has been able to establish stability in the downstream sector.

Shidok assured Nigerians that once the sector is deregulated, they would buy, particularly petrol below the pump price, adding: “We can say that we have not fully deregulated, but I am bold to say that we have achieved 75 percent of downstream deregulation, making it possible to buy fuel without long queues at filling stations.”

He noted that countries with deregulated regimes had mechanism to protect consumers from exploitation. In a fully deregulated regime, the PPPRA, he said, would ensure the effective distribution of petroleum products.

Shidok explained that in a fully deregulated regime, the agency’s role would be restricted to commercial activities while the Department of Petroleum Resources, DPR, will continue to function as the technical regulator of downstream activities. He explained that PPPRA would not embark on production of biofuel, but would ensure an integrated approach to production.

The roles of PPPRA in coordinating biofuels activities through provision of incentives and encouragement will enable Nigeria to replicate Brazil’s achievement in biofuels production. “Our roles via encouraging production by investors will boost production of liquid fuels and eliminate smuggling across the border. This again will boost Nigeria’s foreign exchange earnings,” he said.

— Mar 20, 2017 @ 01:00 GMT

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