Nigeria: Fuel Price Reduction Directive Creates Problems in Network
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Monday, 26 January 2009 |
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The Federal Government announced a reduction in the pump price of
Premium Motor Spirit (PMS) from N70 to N65 last week. This development
was against the backdrop of downward trend in the prices of crude oil
and refined petroleum products at the international market.
The Petroleum Products Pricing Regulatory Agency said that it
“decided to substitute the fixed price with a recommended price in
order to pass on the benefit of this drop on price to the Nigerian
public.”
The Independent Petroleum Marketers Association of Nigeria (IPMAN) says
its members would lose about N1.6 billion in the new fuel price regime.
The association therefore, asked the government to give its members
little time to enable them sell the product already purchased at the
previous pump price of N70 per liter. The association said that
though its members were most grateful to government over the new pump
price regime, they would be making enormous loss if they implement it
immediately.
IPMAN national public relations officer, Alhaji Danladi Garba Pasali,
said in Abuja that markers accept the price reduction as “it signifies
the total deregulation of the down stream sector.”
He said: “We actually met with the PPPRA, NNPC, PPMC, DPR and several
other stakeholders in the sector in Abuja and agreed that as the result
of the fall of crude oil price in the international market, there
should be subtle benefit for Nigerians in terms of the price of the
refined product.
He however, said that IPMAN has already directed its members
nationwide to ensure effective enforcement of the new price by
adjusting their pump pending the harmonization meeting with
stakeholders on the loss they going to incur as a result of that.
PetrolWorld 240109
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