Tag Archives: IPMAN

Hike in petrol price inevitable – IPMAN

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The speculation about possible increase in price of Premium Motor Spirit, PMS, otherwise known as petrol, may hold some water as the Independent Petroleum Marketers Association of Nigeria, IPMAN, yesterday warned of a threat to product availability in the country.

This came as expert blamed marketers of insensitivity to price moderation when government placed a cap on petrol price in May.

But, other operators have argued that the price of petrol was driven by economic variables, which could not be altered for a long time due to foreign exchange challenges.

Speaking, National President, IPMAN, Mr. Chinedu Okoronkwo, said: “But I will advice for total deregulation. The price moderation, which is the cap placed is not healthy for the petroleum industry to grow.

“There are people who have the forex to bring product and sell. By so doing, forexwill crash. But when the industry is over-protected like ours, the current challenges will be unending. Market force should drive the price.

“If the refineries are working to a capacity of 70 percent, the product will not be more than N130 per litre. We should focus on making the refineries work because by the time you keep on importing, forex challenges will keep on recurring and there would no head way.

FUEL-Price-changeFUEL-Price-change“The Nigeria National Petroleum Corporation, NNPC, should ensure that the refineries are working and government should grant all support needed to ensure that they work, so the country can avert all of the turbulence hitting the petroleum sector as well as the economy.

“The best way to do that is for the government to hands off, and sometime coming in to intervene when the need arises.”

He, however, urged the Federal Government to urgently encourage the setting up of modular refineries in the country as a spur for the refining of crude product.

“The government should encourage the installation of modular refineries in virtually all local government. For example, Ivory Coast has one refinery which is old and yet it is working and giving them the satisfaction to an extent,’’ he added.

He noted that the association planned to invest on building a modular refinery to assist refining of the product.

“We had brought some investors to Nigeria. In Kogi, we had been given land to build a modular refinery,” he said.

He further called for a good policy in the sector to drive the needed investment for growth.

Okonkwo said: “The body language of the government must be seen. An enabling environment should be guaranteed and encouraged for investors to harness.”

Meanwhile, a renowned Petroleum Economist and President, Nigerian Association for Energy Economics, NAEE, Professor Wumi Iledare, has blamed marketers for misunderstanding the intentions of government when it hiked the price of petrol in May.

He said: “The concept of fixing a price at N145 per litre introduced by government in May this years was actually suppose to be a ‘price feeling’ and not ‘price floor.’’

Petrol Price Can Be N40 Per Litre – IPMAN

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The Chairman, Independent Petroleum Marketers Association of Nigeria, Mosimi, Ogun State, Mr. Adeleke Bada, has agreed with the former Minister of Petroleum, Prof. Tam David-West, that petrol can sell for N40 per litre.
He says this is possible if the country refines all crude oil in the nation’s refineries.
Bada said this in an interview with journalists shortly after the association’s Annual General Meeting in Abeokuta, the state capital.
Bada, who was flanked by other members of the executive of the association, was reacting to the advice given by David-West to the President-elect to reduce the pump price to N40.
He said, “Reducing the price of petrol to N40 a litre is possible only if the refineries are working. If you look at the nature of the market presently, that isn’t realistic. Do we have the refineries?
“The only reason that it can be possible is when we have our own refineries and we do not export our

crude oil for processing. If the processing is done in Nigeria, then it can be sold at the rate of N40, but not until all the refineries are fixed.”

He, however, blamed the non-compliance of sale of petrol at N87 per litre by some petroleum marketers on the expenses incurred by the marketers while trying to get the fuel available for the use of the masses.
He said the levies being paid by the marketers to various regulatory associations and unions had forced the marketers to increase the prices of fuel to their desired amount.
He said, “The government has not increased the price of fuel; it is still N87 per litre.
“But by the time you get to the depot, after paying around N2.6m for your ticket, a lot of levies are still to be paid; levies from PTD, IPMAN and all others. Adding them all together with the cost of transporting your trucks to the station, no one is ready to run at a loss.”

Buhari Cannot Reduce Fuel Price To N40 Per Litre- IPMAN

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) has disclosed that the incoming administration of General Muhammadu Buhari cannot reduce the price of petrol to N40 per litre. The Chairman of IPMAN in Ogun State Adeleke Bada made this disclosure shortly after the association’s Annual General Meeting held in Abeokuta.

He said the ongoing issues in the industry could not make such development realistic while reacting to a recent statement credited to former Minister of Petroleum Resources, Tam David West who said the President-elect, Gen. Buhari would reduce the pump price to N40. He, however said the price could be reversed to N87 per litre if the Federal Government builds refineries in some parts of the country.

Read More: DailyPost

Importation of Petrol Commences

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) on Tuesday directed its members to commence importation of refined petroleum products as the Federal Government had pledged to pay outstanding subsidy.

The National President of IPMAN, Chinedu Okoronkwo, disclosed the directive in Lagos. Okoronkwo said the directive followed assurances from government and to alleviate the sufferings of Nigerians from the ongoing national scarcity of petrol.

According to him, we have had series of meeting with government agencies that are saddled with the payment of subsidy claims and we have been assured of prompt payment. “IPMAN members have been instructed to commence importation of petrol into the country to avert the lingering fuel scarcity.

“The Ministers of Petroleum and Finance have assured us of prompt payment of the marketer’s money; we urge Nigerians not to engage in panic buying of petrol as adequate petrol will be in circulation soon,’’ he said.

The IPMAN boss, however, warned its members to desist from hoarding petroleum products, adding that the association’s surveillance teams would monitor compliance nationwide. He said the association would penalise marketers indulging in hoarding of petroleum products and other sharp practices.

Okoronkwo said that joint taskforce by IPMAN and the NNPC had been set up to monitor petrol retailing as part of efforts to stabilise supply. He lauded the programmes of the Pipelines and Products Marketing Company, a subsidiary of NNPC, saying that without them the sanity in the downstream oil sector would not have been possible.

He advised the Petroleum Products Pricing Regulatory Agency (PPPRA) to give import licences to serious marketers who were willing to import petrol.

The management of NNPC on Monday began fresh measures to halt artificially induced petrol scarcity in some parts of the country. The corporation said it planned to import more than one billion litres of petrol in March to address short fall in supply.

Credit: NAN