In what appears to be a volte face, the federal government has declared that it is yet to decide on a date for the take-off of the deregulation of the downstream sector of the oil and gas industry.

Minister of State for Petroleum Resources, Mr. Odein Ajumogobia disclosed this to newsmen in Abuja even as he assured that the policy would not bring hardship to Nigerians as speculated.

He said the artificial scarcity being experienced by motorists was due to panic buying and hoarding of the products by some overzealous marketers who were prompted by the rumoured November 1, take off date for the policy.

It would be recalled that queues, last weekend, began to mount in filling stations in cities across the nation as the speculated November 1 deregulation of the petroleum sector appeared imminent.

Ajumogobia said government was still consulting with stakeholders, civil society groups and the Nigeria Labour Congress (NLC) with the view to building consensus. He explained that President Umaru Yar'Adua was favourably disposed to genuine advice and was keen in ensuring that all stakeholders were carried along in the process that would lead to the final decision on the implementation of the policy.

The minister said further that similar reaction being currently witnessed from marketers and motorists should be expected at any future date, whether December or January, when deregulation is rumoured again. He therefore assured that government would not hesitate to inform Nigerians through the appropriate channels once consensus is achieved.

Ajumogobia berated the current system of importation and marketing of products, describing it as a vicious cycle, which only benefits a few people at the expense of government and the ordinary citizens.

The minister said government had expended about N600 billion in 2008 and is expected to spend more in 2009 on subsidy which goes directly to this privileged few, adding that the status quo was not sustainable and thus the compelling need to overhaul the present system to free it of inherent encumbrances, inefficiencies and corruption.

Ajumogobia emphasised that deregulation would allow market forces to dictate prices of products for more players in the sector, thereby leading to efficiency that would positively impact on growth in the entire sector.

He said government would use funds accruing from the removal of subsidy on petroleum products to provide infrastructure in the country.