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Fuel Price Buckles Under Oil Marchants’ Numerical Strength Following Subsidy Removal
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Oil marketers, represented by the Independent Petroleum Marketers Association of Nigeria (IPMAN), have disclosed that they possess the necessary numerical strength to bring down the pump price of Petrol.
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This is in response to the ongoing fuel subsidy removal discussions that has plagued the Nigerian political space.
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President Tinubu, during his inauguration, declared an end to the fuel subsidy regime in the country.
EKO HOT BLOG reports that Oil marketers, represented by the Independent Petroleum Marketers Association of Nigeria (IPMAN), have disclosed that they possess the necessary numerical strength to bring down the pump price of Premium Motor Spirit (PMS), commonly known as petrol.
This statement from the oil marketers comes in response to the recent removal of the fuel subsidy regime by President Bola Tinubu.
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President Tinubu, during his inauguration, declared an end to the fuel subsidy regime in the country. Subsequently, the Nigerian National Petroleum Company (NNPC) Limited raised the pump price of petrol from N184 per liter to N500 per liter.
Chinedu Okoronkwo, the President of IPMAN, expressed the association’s full support for the subsidy removal, emphasizing that it will encourage greater investor participation in the downstream oil sector, thereby benefiting the industry as a whole.
Regarding their ability to bring down the fuel price, Okoronkwo explained that once the association commences independent importation of the product, they can leverage their numerical strength to exert downward pressure on the pump price. This capability is one of the advantages of deregulating the downstream oil sector.
Fuel Scarcity in Nigeria
The IPMAN President highlighted that the 2023 Budget did not allocate funds for fuel subsidy, further asserting that subsidy payments are no longer justifiable.
However, Okoronkwo acknowledged that President Tinubu’s abrupt announcement caused panic in the oil sector, leading to fuel scarcity and a subsequent increase in petrol prices.
As the discussions surrounding fuel subsidy removal and its consequences continue, the IPMAN’s assertion of their numerical strength offers a glimmer of hope for consumers hoping for a reduction in petrol prices.
The association’s readiness to engage in independent importation and their confidence in forcing down prices may influence the dynamics of the fuel market moving forward.
FURTHER READING
The impacts of subsidy removal and subsequent adjustments in fuel prices are being closely monitored, as stakeholders assess the long-term implications for the Nigerian oil industry and the overall economy.
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