Article summary
- IPMAN assured that it has the capacity to force down the price of petrol once they start the importation of the product.
- It stated that the association is in total support of fuel subsidy removal by President Bola Tinubu and expressed optimism that the unbundling of the downstream sector has opened the doors for more investors to come in.
- IPMAN President said the association has decided to use CNG as an alternative energy source to cushion the effect of subsidy removal.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has assured that it has the numerical strength to force down the price of Premium Motor Spirit also known as petrol, after the pump price of the product skyrocketed following the removal of subsidy by the Federal Government.
This was made known by the National President of IPMAN, Chined Okoronkwo, while addressing journalists at a news conference in Abuja on Wednesday, June 7, 2023.
IPMAN in support of fuel subsidy removal
Okoronkwo had disclosed that members of his association are totally in support of fuel subsidy removal by President Bola Tinubu and expressed optimism that the unbundling of the downstream sector has opened the doors for more investors to come in.
The IPMAN president expressed optimism that the association has the numerical strength to force down the price of fuel once they start independent importation of the product.
- He said, “Our association has the numerical strength to force down the price of fuel once they start independent importation of the product.’’
IPMAN to use CNG as alternative
Speaking further, the IPMAN president said the association has decided to use Compressed Natural Gas (CNG) as an alternative energy source to cushion the effect of subsidy removal, adding that its adoption will serve as an alternative fuel that would bring a better and long-lasting solution to the constant fluctuation in the price of petrol in the global market.
Okoronkwo, who had supported the removal of subsidy and usage of CNG said bringing CNG which was cheaper than even firewood as an alternative energy would create relief for the government and its citizens.
- He added, “We have also discovered that bringing an alternative that is cheaper than even firewood which is CNG will not only create relief for the government and its citizens but is environmentally friendly.
- “The CNG is abundantly available in Nigeria than anywhere in Africa.
- “In the Niger-Delta region, you see billions of tonnes of gas flare being wasted daily, these are huge amounts that should be accruing to our GDP but we are wasting it because there is no market for it.
- “So we are asking the government to create the market. How do you create the market?
- “What Egypt and India did was to give soft loans to be paid back within stipulated periods from there you can get vehicles to use gas instead of fuel.’’
What you should know
- Recall that President Bola Tinubu during his inaugural speech on May 29, 2023, announced that fuel subsidy is gone as there was no provision for that in the 2023 budget from July 1.
- The statement by the president led to a spike in the pump price of petrol as the Nigeria National Petroleum Company (NNPC) Limited, who has been the sole importer of the product, announced an increase of the product to over N500 per litre as against the earlier N184 per litre.
- This led to a declaration of a planned strike action and protest by the NLC and TUC.
- The strike was however suspended on the backdrop of the judgment of the Industrial Court which restrained them from going ahead with the strike as well as the outcome of the meeting between the leadership of the organized labour and representatives of the Federal Government.