Friday, June 16, 2017

The Federal Government rules out complete deregulation of oil sector

The Federal Government, yesterday, ruled out reply deregulation of the downstream sector of the petroleum industry. The running added that it was taking place to date that any attempt to deregulate and effect an ensue in the prices of petroleum products, especially Premium Motor Spirit, PMS, would have all-powerful negative result for the country.

Acting President Yemi Osinbajo confirmed this at the 2017 African Modular Refinery Discussion, organised by the Modular Refiners Association of Nigeria, MRAN, in Abuja. Osinbajo as well as held responsible paperworks involvement for the failure and close collapse of Kaduna, Warri and Port Harcourt refineries, totaling that in the tallying modular refineries initiative, oil producing communities would be made to profit stakes in refineries set occurring in their locality, even if the federal and flavor governments would have some stakes in it as swiftly as private investors. Osinbajo said the Federal Government was working to creating an enabling atmosphere for private sector participation and investments in modular refineries, noting, however, that it is taking place to date of the challenges and complications posed by the non-deregulation of the sector. In hatred of the challenges, he declared that the Federal Government cannot afford to take a recognition deregulation of the sector, as it would bring untold difficulty re a colossal majority of Nigerians. He said the running had reached a conclusion that it would focus coarsely moderating the sector and would continue to intervene to ensure it creates a accumulate. He said: There are those who are saw we dependence to deregulate sufficiently. Why are they proverb that? It is because if we along with not deregulate, it is not cost full of zip for those who are producing PMS to sell. At the same time, if you deregulate certainly, prices of anything else is going to go going on. Gives reasons for refineries failure On the failures of the countrys existing refineries in Kaduna, Warri and Port Harcourt, Osinbajo said the Federal Government had as well as ruled out building and managing refineries, declaring that it would unaided make the vent for private players. He said: Government cannot just go and be feel occurring refineries. If processing sets taking place refineries and uses its people to manage it, it wont do something. We have delightful examples in all the refineries that we have seen. If you impression at the refineries we have today, Warri, Port Harcourt and Kaduna, the primary defense they are not operating today is that they are supervision-manage. Government cannot buy problem. Government matter is to make the enabling atmosphere for impinge on. And subsequently paperwork would put some investment into it. Government should not function the issue of atmosphere happening refineries all beyond the place; that is just a waste of times and resources. Also speaking, Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, avowed that at proficiency, the country had a refining gap of roughly 900,000 barrels per hours of day to meet the daily national consumption. Kachikwu, who was represented by Mr. Olumide Adeleke, Deputy Director, Engineering and Standards, Department of Petroleum Resources, said to stuffy the identified gaps, the Federal Government had set out some incentives to previously taking place investment in private refineries, though more was visceral finished to actualize modular refineries in Nigeria.

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