Oil producers and the Nigerian Midstream and Downstream Petroleum Regulatory Authority on Monday expressed diverse opinions over who should collect the 0.5 per cent wholesale price levy imposed on petroleum products by the Petroleum Industry Act.
While the NMDPRA said the oil producers should collect the levy and remit it into their accounts, the players asked the regulator to be the collector to avoid adding more burden to oil producers.
At a stakeholders sensitisation held in Lagos, the Chief Executive of the NMDPRA, Farouk Ahmed, said the objective of the engagement was to address issues and concerns raised during the first phase of the NMDPRA sensitisation programme to reach an alignment that will enable the effective implementation of the wholesale supply operations.
Ahmed, who was represented by the NMDPRA Legal Adviser, Joseph Tolorunse, stated that the Petroleum Industry Act came into existence in August 2021, introducing licences for wholesale supply operations as prescribed in sections 142 and 197 of the Act.
According to him, these licences are the appropriate licences for entities engaged in or wishing to engage in the sale and delivery of natural gas and petroleum liquids, for domestic use or exports.
