Fuel price hike: Stakeholders urge formation of new committee in oil and gas sector

Stakeholders in Nigeria’s oil and gas sector have called for the establishment of a special structure similar to the Banking Committee to drive development in the industry.

The structure will serve as a link between the upstream and downstream sectors.

One of the proposed structures is a Petroleum Industry Consultative Assembly that would bring together stakeholders from across the oil and gas sector and would be chaired by the Minister of State for Petroleum Resources (Petroleum).

They are also lobbying for a committee that will include a Midstream and Downstream Industry Coordinating Committee to focus on enhancing collaboration in the sector, chaired by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

These were some of the resolutions reached during an online seminar on Wednesday organized by the Primary Energy Marketers Association of Nigeria (MEMAN), in collaboration with the Petroleum Products and Depot Marketers Association of Nigeria (DAPPMAN), the Crude Oil Refiners Association of Nigeria (COREN), the Refiners and Distributors Association of Africa (ARDA), and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).

The webinar was themed ‘Optimizing Nigeria’s Oil and Gas Industry’.

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In the communique at the end of the webinar, stakeholders also discussed the implications of the recent increase in petroleum product prices and stressed the need for full market deregulation.

“The establishment of industry-wide consultative committees is recommended to enhance collaboration, innovation and conflict resolution, addressing supply chain inefficiencies and infrastructure deficits is considered critical for long-term sustainability.”

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

Furthermore, stakeholders discussed “Market-driven pricing mechanisms are recommended to enhance competitiveness and operational efficiency. Removal of government control over pricing is seen as essential to foster a more dynamic and responsive industry.”

“The call for comprehensive deregulation and market liberalization was reiterated.

The benefits include increased efficiency, increased product availability, and increased private sector participation,” the communique reads.

By Babajide Okeowo

Fuel price hike: Stakeholders call for new committee on oil and gas sector first appeared on Latest Nigeria News | Top Stories from Ripples Nigeria.