Labour Has Agreed with FG on Deregulation, But Fuel Prices Must Not Immediately Go Up, Sylva Assures
SYLVA, MINISTER OF STATE PETROLEUM
The Minister of State for Petroleum Resources, Chief Timipre Sylva, Tuesday said that the federal government and the organized labour have reached agreement on the deregulation of the downstream petroleum sector.
Sylva said with this development, market forces will now be allowed to determine the price of fuel in filling stations.
He explained that this was following the signing into law of the new Petroleum Industry Act.
But he made it clear that this does not mean that the prices of fuel would immediately go up.
Speaking to newsmen in Abuja, he disclosed that a framework on how to deregulate the cost of fuel is being worked on by both government and labour.
He gave indication that the details would be provided today by President Muhammadu Buhari.
The Minister insisted that there has been consensus on deregulation of the cost of fuel when asked on whether fuel price would soon go up.
He however explained that the price of fuel would not immediately go up.
The Minister said, “The issue is not just about discussing with labour, because we agreed between labour and us that we need to put a framework in place for the implementation of deregulation.
“Because more or less, there is a consensus across the table now that deregulation is desirable. But how do we achieve it? That’s the question now. We and the organised labour have agreed and so we are now in the process of putting the infrastructure and process in place.”
“Once we are able to agree on that process with labour, then we are ready to deregulate. So, we will keep it within that band (N162-N165 per litre) for the time being.
“But we are trying to work out the processes to come to fruition, because right now, we don’t even have a choice anymore. It is a matter of law.”
“Well as you know, the Act has actually deregulated the sector, but that doesn’t mean that there will be an immediate implementation of the deregulation.
“What the Act provides is that products will be sold at market dictated prices. But we are mindful of the fact that this will bring some hardship and that is why we are not going to jump to implement it immediately.
“The implementation framework will take care of that as well as how we are going to alleviate the sufferings that this might bring”.
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