Fuel hike: Stakeholders call for establishment of new committee in oil and gas sector

Stakeholders in the Nigerian oil and gas sector have called for the establishment of special structure akin to the Bankers’ Committee to drive development in the industry.

The structure will serve as an interface between the upstream and downstream sectors.

One of the proposed structure is a Petroleum Industry Consultative Assembly that will bring together stakeholders from across the oil and gas sectors to be chaired by the Minister of State for Petroleum Resources (Oil).

They also canvassed a committee that would include a Midstream and Downstream Industry Coordination Committee to focus on enhancing collaboration within these sectors, chaired by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

These were some of the resolutions arrived at during a webinar on Wednesday organised by Major Energies Marketers Association of Nigeria (MEMAN), in collaboration with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Crude Oil Refiners Association of Nigeria (COREN) African Refiners and Distributors Association (ARDA), and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).

The webinar was themed ‘Optimising the Nigerian Oil and Gas Industry’.

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In a communique at the end of the webinar, the stakeholders also discussed the implications of recent price hikes in petroleum products and emphasised the need for full market deregulation.

“The creation of industry-wide consultative committees was suggested to enhance collaboration, innovation, and conflict resolution, addressing supply chain inefficiencies and infrastructure deficits was deemed crucial for long-term sustainability”.

“These committees aim to foster collaboration, ensure regulatory compliance, facilitate conflict resolution, and provide strategic oversight, akin to the role played by the bankers’ committee in the banking sector” the communique said.

Continuing, the stakeholders canvassed “A market-driven pricing mechanism was advocated to promote competitiveness and operational efficiency. The removal of government controls on pricing was seen as essential to fostering a more dynamic and responsive industry”.

“The call for complete deregulation and market liberalisation was reiterated.

The benefits include improved efficiency, enhanced product availability, and increased private sector participation,” the communique read partly.

By Babajide Okeowo

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