IPMAN urges FG to fix refineries prior to deregulation

The Independent Petroleum Marketers Association of Nigeria (IPMAN) yesterday advised the Federal Government to deregulate the downstream oil sector so as to attract investors and end fuel scarcity.

Its National Vice President, Alhaji Abubakar Maigandi, said the government must, however, rehabilitate its refineries, saying once government produces locally, it would cut cost from the importation of petrol.

He said: “Deregulation should continue. But before deregulation, let the government repair the government refineries. When the government has put its own refineries in order, then it can deregulate.”

Although he admitted that even if the refineries record full capacity utilisation, their products will still be insufficient for consumption, adding that it will be a good measure to remove the subsidy.

He said upon the removal of subsidy, the pump price will become attractive to local and foreign investors in modular and large refineries.

Maigandi said: “Foreign investors will come and invest. Now if there is no deregulation, no investor will come. If the government is producing and it deregulates the sector, the price will not be higher.”

He said the group has a licence for a modular refinery but it is waiting for a cost reflective pump price of petrol before commencing construction. The price will not come by happenstance, it will come when the government deregulates the pump price, but the stakeholders are apprehensive of its resultant uprising, he said.

He commended the government for the free flow of petrol to the retail outlets in throughout the country.

He, however, complained that the major setback that the marketers were facing was that of the Petroleum Equalisation Fund (PEF) which was underpaying bridging claims.

He said: “The petroleum market is moving, and things are fine. But the only thing I tell you is about we independent marketers. The PEF is cutting our money for transportation. So this is affecting our business greatly.”

SOURCE: today.ng

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