The President of, Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that apart from international pricing, extortion by security agencies, such as the Department of State Services (DSS), Police and arbitrary levies by government agencies were responsible for the recent increase in fuel price from N537 to N617.
The National President of the association, Mr Chinedu Okoronkwo, made the accusation yesterday at a public hearing organised by the House of Representatives Ad hoc Committee on the Recent Hike in Petrol Pump Price.
According to him, Nigeria is now in the regime of the Petroleum Industry Act where what controls the market now is reality.
Okoronkwo disclosed that IPMAN members are currently cash-trapped and could not engage in the direct importation of fuel, having been owed about N250 billion by Nigeria‘s oil giant, the NNPCL.
He further called on the government to instruct all its agencies to put a stop to arbitrary charges built into the price of fuel by marketers.
Speaking on the way forward on the present challenges in the oil sector, Okoronkwo recommended a switch to Compressed Natural Gas (CNG) to permanently address the rising cost of Premium Motor Spirit (PMS) in the country in order to ease challenges faced due to the removal of subsidy.
He acknowledged that the only way for Nigeria to make meaningful progress was to remove fuel subsidy, so the government could save money for other critical aspects of the economy.
He explained that in a deregulated business, the reality and the fundamentals of the business would play out as everyone had seen in the increase of petrol price, sequel to the removal of fuel subsidy.
He noted further that the floating of the naira had also contributed as the commodity was not refined in Nigeria, hence international prices would affect it.
The IPMAN president also explained that Nigeria had a mega quantity of gas, especially in the Niger/Delta which could be a succour.
“In spite of the excruciating pain of subsidy removal, they’re something that can act as a succour in the country if we must live and be happy.
“Energy everywhere is critical, it is in the security list of every nation and God has given us about the best in gas that can last for over 500 years.
“What we require now is to build the market, the demand will be there, we need this hose to help us build the market.”
