Written by Godfrey AKON

IPMAN calls for increased local refining of petrol

The National President of Independent Marketers Association of Nigeria, IPMAN, Comrade Chinedu Okoronkwo, has called for increased local refining of petrol to mitigate the impact of the crash in global crude oil price on the nation’s economy.

Okoronkwo, who spoke to nation’s wire service, the News Agency of Nigeria, urged the Federal Government to encourage investment in establishing modular refineries in the country.

“It is not all gloom. This will allow many people to see the opportunities on how to come into refining our products locally and we believe the government can encourage this by giving them incentives.

“When we refine here locally, we can even sell below what we are selling now to Nigerians which will be good for our economy.

“We need more modular refineries so that we can be able to enjoy these our God-given resources,” he said.

According to him, the recent reduction of Ex-Depot Price of Premium Motor Spirit by the Nigerian National Petroleum Corporation, NNPC, from N113.28k per litre to N108.00K per litre was not surprising due to the removal of subsidy.

“The announcement of the new ex-depot price is what you should expect in a deregulated regime; there is no more subsidy and it is the market value that determines the price.

He noted that the country has started the journey to totally deregulate the market like what is obtainable in AGO, diesel, and will get there gradually.

Okoronkwo also explained why some marketers were still selling the PMS at N125 per litre in spite of the reductions made in recent weeks to the product.

“It is not about compliance with the price reduction because some people can even sell below the current price.

“The market is not being regulated again so it depends on the individual marketer to do what will attract customers.

“There is availability of product and customers and they have the right to choose where they want to buy fuel, and these filling station owners know that,” he said.

Meanwhile the National Vice President of IPMAN, Alhaji Abubakar Maigandi, has said the association was looking forward to receiving a letter from the Nigerian National Petroleum Corporation, NNPC, before complying with the new petrol ex-depot price of N108 per litre.

Maigandi who commended the Federal Government on the downward review of the pump price, said marketers were still buying petrol for N111 per litres even when NNPC had announced the penultimate price reduction of N125. 50 per litre.

On why marketers refused to comply with the previous announcement of price reduction, he said: “Now we have the old stock, once the old stock is finished, I know we are going to receive the order from the government then we will reverse to the new price.”

He said the supply of petrol from the depots was fair but “they have not started selling at the new rate. We are also waiting for them to start selling at the new rate so that we can also adjust. The depots are still selling at N111 per litre.”

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