What Deregulation Of The Downstream Oil Sector Mean?

The Petroleum Industry Act (PIA) which provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry, the development of host communities and related matters, marks the beginning of a new era in the growth and development of the entire oil and gas industry.

Deregulation is one of the main highlights of the PIA…deregulation of the downstream sector is the opening of the downstream sector in the oil and gas industry to competition where players are to participate at every segment of the value chain and the removal of entry barriers in the supply and distribution of petroleum products.

The Minister of State for Petroleum Resources, Timipre Sylva says the deregulation of the downstream oil sector was to ensure economic growth and development of the country.

He said it was unrealistic to continue to subsidise the Premium Motor Spirit (PMS) also known as petrol as it had no economic value. However it will not happen too soon.