The Independent Petroleum Marketers Association of Nigeria (IPMAN), has announced its support for the Federal Government over the planned removal of subsidy on Premium Motor Spirit (PMS).
IPMAN said its support for the move stems from the realization that the Petroleum Industry Act (PIA) signed into law by President Muhammadu Buhari on August 16 makes no provision for subsidy.
Moreover, IPMAN President, Chinedu Okoronkwo, told the News Agency of Nigeria (NAN) that his association has consistently “advised the government to remove petrol subsidy because it is not in the interest of the development of the downstream sector.”
Okoronkwo said in the NAN interview: “We welcome the decision of the government to stop subsidizing petrol by 2022 and we are hoping it will attract more investments to the sector, especially with the passage of PIA.”
He added: “What we want is that a level playing field is provided for everyone in the sector to encourage competition once the subsidy is removed.”
Also speaking on the issue, the immediate past President, Major Oil Marketers Association of Nigeria (MOMAN), Tunji Oyebanji, said prolonged subsidizing of petrol was not sustainable in light of current economic realities.
He said the 2022 deadline was rational and its effect might be mitigated with the coming on stream of the 650,000BPD Dangote Refinery, Bua Group Refinery, Waltersmith Refinery, and other modular refineries.
