Increase in NMDPRA tariffs contributed to hike in price of Petrol — IPMAN

The Independent Petroleum Marketers Association of Nigeria (lPMAN) has explained that the increase in tariffs by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) contributed to an increase in the cost of petroleum products.

The National President of IPMAN, Alhaji Debo Ahmed, disclosed this in a statement on Tuesday.

Recall that President Bola Ahmed Tinubu announced an end to subsidy on Premium Motor Spirit (commonly referred to as Petrol) in his inaugural speech last year. Upon removing the fuel subsidy, the product’s price has since skyrocketed from N210 per litre to over N595 per litre.

The IPMAN President noted that the over 600 percent increase in the cost of petroleum products across the country between 2020 and 2023 was in part the fault of the NMDPRA.

He pointed out that the arbitrary and excessive nature of the price hike not only discourages potential investors but also creates barriers for new investors seeking entry, burdening existing businesses.

He highlighted that increased costs are ultimately transferred to consumers and the public.

He provided an example where the calibration cost per tank, previously set at N20,000, has surged to N150,000 per tank, indicating a 650 per cent increase.

The price for pressure testing, formerly N20,000 per tank, has also risen to N150,000 per tank.

He said, “Those already in the business will pass the burden to the consuming public, affecting the cost of products. I think NMDPRA, as an agent to the Federal Government, should advise them on how to succeed in this removal of oil subsidy.

“Between 2020 and 2023, NMDPRA had increased some, if not all, of its operational tariffs to over 600 per cent and added other unnecessary tariffs, generating lines to the already existing ones.”