IPMAN Backs Fuel Price Reduction, Urges FG To Deregulate Market

The Independent Petroleum Marketers Association of Nigeria (IPMAN), has supported the reduction of the  pump price of Premium Motor Spirit from N145  to N125 per litre by the Federal Government.

IPMAN’s President, Mr Chinedu Okoronkwo, disclosed this in an interview, in Lagos last week.

Okoronkwo urged the government to deregulate the petroleum sector especially with the opportunity provided by the crash of global crude oil prices.

He said: “We welcome the reduction because it is what will bring relief to Nigerians who are facing economic challenges.

“Although some of our members have old stocks and some have ordered for products with the old price but we believe we must put the interest of the country first.

“We will still engage the government on what can be done to cushion the effect of the reduction on our businesses in terms of palliatives.”

On the need for deregulation of petroleum industry by the government, he said it was the right thing to do since the product was no longer being subsidised due to the low cost of landing.

“This is the time for government to deregulate PMS just like it was done with diesel and kerosene and let the market forces determines the price.

“Deregulation of PMS will enable more modular refineries to come on board so that we won’t need to refine our crude oil outside the country.

“Also, the government should give all necessary support to Dangote Refinery so that it can start production as soon as possible.

“Once we are able to meet our local consumption needs, the pressure on foreign exchange will reduce which will be good for our economy,” he said.

“We are aware that the government has directed that we should be selling at N125 but we have not been instructed by our boss to do so because what we have is old stock.

“Once that directive comes, we will start selling at the new price,” he said.

A commercial bus driver who simply gave his name as Wasiu said he bought fuel at a filling station in Abule Egba at N145 per litre.

He said all the stations within that axis were still selling at the old price leaving motorists with no choice than to buy at that price.

Mr Mele Kyari, Group Managing Director, Nigerian National Petroleum Corporation (NNPC), had in  a statement on March 18, said the new price of PMS would begin from March 19.

“In compliance with the directives of the Minister of State for Petroleum Resources on PMS pricing, the Corporation has reviewed its Ex-coastal, Ex-depot and NNPC Retail pump prices accordingly.

“Effective March 19, NNPC Ex-Coastal price for PMS has been reviewed downwards from N117.6/litre to N99.44/litre while Ex-Depot price is reduced from N133.28/litre to N113.28/litre.

“These reductions will, therefore, translate to N125/litre retail pump price,” he said