|
| |
Last Updated: Aug 14th, 2006 - 11:32:28
|
Business News
Government liberalises petroleum pricing
Jun 19, 2003, 19:59
| | President Olusegun Obasanjo yesterday, 19 June, inaugurated the Petroleum Products Pricing Regulatory Agency (PPPRA) to monitor and regulate the pricing and distribution of petroleum products.
The inauguration marked Government’s formal disengagement from fixing petroleum prices, since part of the Agency’s responsibility would be to moderate instability in petroleum product pricing.
The National Council of States, the previous day, had endorsed Government plans to leave the pricing of petroleum products to competition and market forces.
The new policy is in line with the PPPRA (Establishment) Act 2003 passed by the previous National Assembly and signed into law by the President.
Two Committees that were set up by Government in 2001 to review products supply and distribution, and regularise petroleum product pricing, recommended the establishment of the Agency.
The Committees had suggested that the downstream oil industry, which is the sector dealing with refining, distribution and marketing of petroleum products, be opened up to competition through a comprehensive reform of the industry.
Among the reforms recommended were regular maintenance of the refineries owned by Government, as well as encouragement of private sector initiatives in petroleum pipelines, depots and refining.
The President said at the inauguration that Government accepted the recommendations based on their potential to improve product supply, increase private sector investment in refining, and promote competition. These, he said, would:
· Create more jobs
· Lead to competitive pricing of petroleum products
· Free the Nigerian National Petroleum Corporation (NNPC) from the burden of absorbing the cost of oil price fluctuations in the international markets
The Agency members are drawn from stakeholders in the downstream sector as well as other interest groups.
Related Article:
© Copyright 2006 nigeriafirst.org
Top of Page |
|
[an error occurred while processing this directive]
|
About Us | Contact
us | Sitemap | Disclaimer
Feedback | Directories
| Useful Links |
|
|
