Marketers list alleged extortion by DSS, Police as factors responsible for hike in PMS price

The President Independent Petroleum Marketers Association of Nigeria (IPMAN) has attributed extortion by security agencies like the Department of State Security (DSS), Police and arbitrary levies by government agencies as factors responsible for the recent increase in fuel price from N537 to N617.

The National President of the association, Mr Chinedu Okoronkwo made the accusation at a public hearing organised by the House of Representatives Ad hoc Committee on the Recent Hike in Petrol Pump Price on Tuesday.

According to him, “Nigeria is now under the regime of the Petroleum Industry Act” adding that “what controls the market now is reality.”

Okoronkwo disclosed that IPMAN members are presently cash trapped and cannot engage in direct importation of fuel as they are presently owed about N250 billion by Nigeria ‘s oil giant, the NNPCL.

He further called on the government to instruct all its agencies to put a stop to arbitrary charges which are built into the price of fuel by marketers.

Speaking on the way forward on the present challenges in the oil sector, the President however recommended a switch to Compressed Natural Gas (CNG) to permanently address the rising cost of Premium Motor Spirit (PMS) in the country in order to ease challenges faced due to the removal of subsidy.

Okoronkwo acknowledged that the only way for Nigeria to make meaningful progress was to remove fuel subsidy so that government can save money for other critical aspect of the economy.

He explained that in a deregulated business, the reality and the fundamentals of the business will play out as everyone has seen in the increase of petrol petrol price sequel to the removal of fuel subsidy.

He further noted that the floating of the dollar has also contributed as the commodity is not refined in Nigeria, hence the detracts of International prices will affect it.

The president also explained that Nigeria has mega quantity of gas especially in the Niger/Delta which can be a succour.

“In spite of the excruciating pain of subsidy removal, they’re something that can act as a succor in the country if we must live and be happy.”

“Energy everywhere is critical, it is in the security list of every nation and God has given us about the best in gas that can last for over 500 years.”

“What we require now is to build the market, the demand will be there, we need this hose to help us build the market.”

“Everyone is feeling the pintch, everyone has taken the bullet; palliatives is just for some time, what is the permanent solution is what we have brought to the nation and we tag it good news because with little money you can fill your tank and still do business,” he said.

Okoronkwo said if Nigeria is thinking building a 6000km pipeline to Europe to sell gas because there is an organised market there, we can do a lot more for a market of 200 million Nigerians.

Earlier, the Chairman of the Committee, Rep. Benson Babajimi (APC-Lagos state) said that the committee was set up to investigate the hike in petrol price from N537 to N617.

He said that petrol is the lifeline of the Nigerians economy and an increase in the price will affect price of food on which Nigerians spend 80 per cent of their income.

Babajimi said though the government meant well for the nation, there was a need to ensure the hike does not have a devastating effect on Nigerians.

He urged the stakeholders to be open in their submission to enable the committee to deliver on its mandate saying that the committee will be transparent and objective in its reports.