Petrol Pump Price Hike: Presidency Lied, Only Market Forces Can Determine Price – IPMAN

By Ayodele Oni

Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that it is only market forces that can determine whether pump price of petrol will rise or not.

According to IPMAN, the Presidency lacks necessary information data on petroleum business to assure Nigerians that there will not be further increase in the pump price of Premium Motor Spirit (PMS), popularly known as petrol.

A presidential spokesman, Ajuri Ngelale, had while briefing State House correspondents on Tuesday, dismissed insinuations that there would be further increase in fuel price, considering the rise in dollar rate.

But, speaking with journalists in Port Harcourt on Wednesday, IPMAN chairman in Rivers State, Dr. Joseph Obele, said the claim shows that the Presidency lacked basic knowledge of the principles of the economy.

Obele stated that the claim by the Presidency would only be possible if the Federal Government will secretly re-introduce subsidy payment to cover the additional cost as being lamented by the fuel importers.

“Mr President had earlier removed fuel subsidy, this implies that the commodity is now a deregulated product. Prices in a deregulated economy are not benchmarked or controlled, rather they are moderated by market forces.

“Petroleum importers have announced last week that landing cost for PMS has increased above ₦700 because of high rate of foreign exchange, yet you are saying petrol price won’t increase. That is not possible in any way.

“That statement from Presidency can only be possible if the federal government will secretly re-introduce subsidy payment for the additional cost as lamented by the importers.

“Otherwise, the importers of petroleum products from the international market will pause further importation. I can tell you on good authority that they have suspended. We are currently experiencing a supply gap. There is shortage of supply at the moment.

“Majority of the importers and depots have announced price increment yesterday Tuesday 15th August, yet someone is telling us that petrol price won’t increase.

“I think they tell us what we want to hear to calm us, and what is the reality? As long as we keep importing from the international market, then prices will reflect as such because of external elements.

“External elements are uncontrollable, since no man can control such external variables, then no one should have the capacity to lie to Nigerians that price will not be increased.

“Can you control the Russian-Ukraine war or increase in foreign exchange rate that is affecting the prices of petroleum products? If no, then how can you control the price of PMS that is imported from the international market?

“The earlier we repair our refineries, the better for us as a nation. Then, we can locally control the price of PMS.”