The Independent Petroleum Marketers Association of Nigeria (IPMAN) has stated that it supports the Federal Government’s decision to remove subsidy on Premium Motor Spirit (PMS) by 2022.
This was disclosed by IPMAN’s President, Mr Chinedu Okoronkwo, in an interview with the News Agency of Nigeria (NAN) on Friday in Lagos
He added t that the Petroleum Industry Act (PIA) signed into law by President Muhammadu Buhari on August 16 has no provision for subsidy.
What the IPMAN boss is saying
Okoronkwo stated that as marketers, they have always advised the government to remove petrol subsidy because it is not in the interest of the development of the downstream sector.
He said, “We welcome the decision of the government to stop subsidising petrol by 2022 and we are hoping it will attract more investments to the sector, especially with the passage of PIA.
“What we want is that a level playing field be provided for everyone in the sector to encourage competition once the subsidy is removed.”
He urged the FG to reinvest savings from subsidy into other areas including healthcare, education, and agriculture.
Meanwhile, Mr Tunji Oyebanji, immediate-past President, Major Oil Marketers Association of Nigeria (MOMAN), Managing Director of 11 Plc, faulted the plan to replace the subsidy with cash transfer to Nigerians due to lack of a reliable database in the country.
“In my personal opinion, I am of the view that such funds should be channeled to areas like education and mass transportation that would be accessible to ordinary Nigerians,” Oyebanji said.
What you should know
- Nairametrics reported this week that the Federal Government announced plans to discontinue the payment of petrol subsidy by the second half of 2022.
- The Minister of Finance, Budget and National Planning, Zainab Ahmed, while speaking at a panel session during the ongoing 27th National Economic Summit, she said that for the second half of 2022, complete deregulation of the sector will take effect, saving foreign exchange and potentially earning more from the oil and gas industry.’
- Meanwhile, Malam Mele Kyari, Group Managing Director and Chief Executive Officer of Nigerian National Petroleum Company Limited, added that the price of the product may range between N320 and N340 per litre after subsidy removal by 2022.
