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Adewale Sanyaolu and Chinwendu Obienyi
The Federal Government, on Monday, has said that it was working towards achieving a 40 per cent energy switch from the consumption of Premium Motor Spirit (petrol), Dual Purpose Kerosene (kerosene) and Automotive Gas Oil (diesel), to the use of Liquefied Petroleum Gas (LPG) by 2025.
The move may not be unconnected with plans to reduce the country’s expenditure on fuel subsidy which stood at N623.17 billion in 2018.
This was even as the Federal Government disclosed that an appropriate framework is being developed to encourage public private partnership in the downstream sector, especially in the areas of fixing and expansion of existing pipeline infrastructure and depots.
Speaking during the Oil Trading Logistics (OTL) 2019 Expo in Lagos, the Minister of State for Petroleum Resources, Mr. Timipre Silva, explained that in order to have a robust, investor friendly and stable downstream petroleum sector, the government is currently finalising clearer and more transparent regulatory framework to support rapid infrastructural development in the sector.
Silva, who was represented by his Senior Technical Adviser, Mr. Moses Olamide, noted that the government would aggressively promote the passage of Petroleum Industry Bill (PIB) which, among others, will engender a regulated tariff and open access – pipeline and terminals, establishment of customer protection principles including transparency and accountability, introduction of transportation network code and better relationship among stakeholders in the downstream sector
According to him, the Gas Flare Commercialisation Programme will be aggressively pursued, albeit with foolproof framework, void of ambiguity to ensure sufficient economic benefits to the nation.
