PIGB: NASS introduces 5% fuel levy on consumers

By Ezrel Tabiowo

Abuja

As part of efforts to reposition the Petroleum industry, the National Assembly, yesterday passed the much-awaited Petroleum Industry Governance Bill.

The passage of the PIGB saw the introduction of five percent fuel levy on fuel sold across the country, monies that would be used to finance the Petroleum Equalisation Fund as established under the bill.

This followed consideration and adoption of the conference committee report on the PIGB at plenary yesterday.

Section 36 (1) (a) of the bill provides that: “There shall be established the Petroleum Equalisation Fund into which shall be paid all monies payable to the Equalisation Fund by way of a five per cent fuel levy in respect of all fuel sold and distributed within the federation which shall be charged subject to the approval of the

recovered from petroleum products marketing companies.

According to the bill, the Equalisation Fund shall collect all revenues and levies charged; determine the net surplus revenue recoverable from any oil marketing company and accruing to that company from the sale by it of petroleum products at such uniform prices as may be fixed by the minister; determine the amount of reimbursement due to any oil marketing company for purposes of equalisation of price of products among others.

It also seeks to provide for the governance and institutional framework for the petroleum industry.

Specifics

Specifically, the PIGB seeks to unbundle the Nigerian National Petroleum Corporation (NNPC), provide for the establishment of Federal Ministry of Petroleum Incorporated,

The regulatory bill balkanises NNPC and creates the National Petroleum Commission.

It also scraps the Petroleum Inspectorate,   Department of Petroleum Resources (DPR) and the Petroleum Products Pricing Regulatory Agency (PPPRA), and establishes the Nigeria Petroleum Regulatory Commission which will take over the functions of the three agencies.

Also, the bill empowers the commission          to administer and enforce policies, laws and regulations relating to all aspects of petroleum operation; monitor and enforce compliance with the terms and conditions of all leases, licences, permits and authorisations issued in respect of any petroleum operations.

Furthermore, it defines and enforces approved standards for design, construction, fabrication, operation and maintenance

to all aspects of petroleum operations; establishes the framework for the validation and certification of national hydrocarbon reserves; advises the minister on fiscal and other issues pertaining to the petroleum industry; and undertakes evaluation of national reserves and reservoir management studies.

It also empowers the body to issue licenses, permits or authorisations for downstream gas, petroleum products, storage depots, retail outlets, and transportation and distribution facilities for the industry.

Speaking after the bill was passed, Senate President Bukola Saraki, asked President Muhammadu Buhari to sign the bill into Law.

“I hope with this, we will get the assent of Mr. President and hopefully open a new page for the petroleum industry,” he said.

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