Ogbodo Ozioma Favour
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has raised concerns over the continued increase in tariffs on petroleum products by the Nigerian Midstream and Downstream Petroleum Regulatory (NMDPRA), warning that it could hinder the success of oil subsidy removal.
In a statement issued by the National President of IPMAN, Debo Ahmed, expressed worry that the increase in tariffs could adversely affect the downstream sector’s overall business environment.
Ahmed highlighted that the arbitrary and excessive nature of the increment not only discourages potential investors but also creates barriers for fresh investors to enter, ultimately placing a burden on existing businesses.
He emphasised that the resultant cost is transferred to consumers and the general public, urging the NMDPRA to advise the Federal Government on the way to succeed in the removal of oil subsidies.
The IPMAN president pointed out the tangible impact of the recent spike in diesel pricing and the mounting unpaid bills emanating from the old Petroleum Equalisation Funds on stakeholders in the downstream sector.
He stressed that the increase in internal debts negatively impacts economic activities and the value of the local currency.
He said: “Between 2020 and 2023, NMDPRA had increased some, if not all, of its operational tariffs to over 600 per cent and added other unnecessary tariffs, generating lines to the already existing ones,”
He highlighted the considerable financial burdens imposed on existing and new stations, with license renewal for existing stations amounting to over N2 million and new stations facing expenses exceeding N4 million.
