Ahead of petrol or Premium Motor Spirit (PMS) deregulation in Nigeria, stakeholders in the downstream sector in collaboration with African Refiners and Distributors Association, have demanded from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), transparent, inclusive and competitive guidelines for importation.
Besides, the groups also suggested that in preparation for a fully deregulated market, the Authority needs to continuously determine local refining capacity, project and request crude oil requirements from the Nigerian Upstream Petroleum Regulatory Commission.
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In a communique issued at the end of a visual workshop on Thursday, aimed at addressing key challenges and outlining strategies to ensure a sustainable future for the petroleum downstream sector, the group noted that there is immediate need to consistently limit and mitigate against fuel supply gaps and price volatility, related to exposure to international markets.
The propose guidelines, participants explained should provide the pathway for obtaining foreign exchange, needs to be made public, and implemented in good time prior to the commencement of price deregulation.
Participants emphasized that the gains from removal of fuel subsidies can only be achieved through effective change management, identifying potential pitfalls and mitigation strategies.
This, they said include implementing appropriate palliatives for public transportation and the transportation of agricultural produce as we journey towards full deregulation, improving access to foreign exchange and trade finance, ensuring strategic stock, and providing access to crude oil for refineries. Additionally, the workshop discussed open access and optimizing the country’s logistics infrastructure, including pipelines, pumping stations, and storage depots.
The workshop provided data-driven insights into the sector’s growth potential. Stakeholders emphasized the need for continuous industry engagement, collaboration, and public sensitization to aid public buy-in on new policies by the government.
“The importance of connecting to regional markets, positioning Nigeria as the regional refining hub, and fostering relationships with international service providers, . including rating agencies, finance and governance institutions, and aligning with the goals of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP), was reiterated at the workshop.
“Ultimately, this collaborative workshop provided a platform for stakeholders to share knowledge and develop strategies to ensure the Nigerian Petroleum Downstream Industry remains a strong, competitive force while transitioning to a more sustainable future”, it noted
