By NBF News

FG sets up 7-man committee on supply of petroleum products

Monday, March 15, 2010
A committee to enhance the proposed Strategies towards the private sector participation in the supply of petroleum products has been set up by the federal government. The committee is headed by newly sworn in permanent secretary, Ministry of Finance, Dr Ochi Achinuvu.

The committee approved by the Acting President was to enable the government “establish the issue of unpredictability of payment as and when due from the Petroleum Support Fund (PSF)”.

Inaugurating the committee in Abuja, the Minister of Finance, Dr Mansur Muhtar said that this situation of unpredictability was “responsible for the withdrawal of the major oil and independent marketers from the importation of petroleum products”.

According to the minister, the seven man committee which has a four point term of reference is expected to provide strategies for: the issuance of sovereign debt instrument; issuance of sovereign statement to the marketers; and payment of compensation to marketers.

The committee, Muhtar said, would also adopt measures that would enhance the auditing , monitoring and evaluation of fuel subsidy payment to the marketers; improve the process and procedures underpinning the Petroleum Support Fund Administration and improve the operations of Petroleum Equalization Fund (PEF) and fuel products allocation.

The minister challenged the committee to see the task ahead as part of their contribution to “ensuring an adequate supply of petroleum products especially at this crucial point in our national life when all Nigerians are crying for economic development.”

He urged the members of the committee to implement a new model and strategic plan that would actualize the predentiamandate. In doing this, Muhtar said, “what I also expect from you is cooperation with the ministry's management and provision of good leadership through honesty and transparency” and tasked them to remain focussed and committed towards meeting up with the challenges of adequate supply of premium motor spirit (PMS).