The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has disclosed that there are no subsidies in the oil and gas sector as Nigeria operates a completely deregulated market.
Mr George Ene-Italy, the Director, Public Affairs Department, NMDPRA, made this known to the News Agency of Nigeria (NAN) in Abuja on Friday.
Ene-Ita was reacting to the recent reports that the Federal Government has removed subsidies or increased the price of Compressed Natural Gas (CNG).
NAN had reported that CNG refilling stations in the Federal Capital Territory (FCT) had early this week increased the product from N230 to N380 for one Standard Cubic Metre (SCM), amid long queues.
The increase in price might be connected to scarcity of the product due to lack of infrastructure which had necessitated long queues witnessed at every refilling station, especially in FCT and Lagos.
“What we have is a baseline price for our gas resources, including CNG as dictated by the Petroleum Industry Act (PIA),” the spokesperson said.
He said that as long as the prevailing CNG market price conforms to the baseline, then the pricing is legitimate.
Meanwhile, the Presidential Initiative on Compressed Natural Gas (P-CNGI) had said that no directive or policy had been issued by the Federal Government to alter CNG pump prices.
The P-CNGI emphasised that the recent pump price adjustments announced by certain operators were purely private-sector decisions and not the outcome of any government directive or policy.
For absolute clarity, it said while pricing matters fell under the purview of the appropriate regulatory agencies, no directive or policy had been issued by the Federal Government to alter CNG pump prices.
The P-CNGI said its mandate, as directed by President Bola Tinubu, was to catalyse the development of the CNG mobility market and ensure the adoption of a cheaper, cleaner, and more sustainable alternative fuel and diesel nationwide. (NAN)
