The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed apprehension that the continuous escalation of petroleum product prices by the Nigerian Midstream and Downstream Petroleum Regulator (NMDPRA) could jeopardize the triumph of oil subsidy removal.
In a statement released on Tuesday in Lagos, Alhaji Debo Ahmed, the National President of IPMAN, highlighted that the ongoing price hikes could also have adverse effects on the overall business landscape of the downstream sector.
Ahmed emphasized that the arbitrary and excessive nature of these price increments not only discourages potential investors but also imposes barriers for new entrants into the industry.
He pointed out that the resulting costs are ultimately transferred to consumers and the general public.
“The existing businesses will shift the burden onto the consumers, impacting the overall cost of products. I believe that NMDPRA, acting as an agent to the Federal Government, should provide guidance on a successful implementation of the oil subsidy removal,” Ahmed stated.
The IPMAN President further explained that the recent surge in diesel prices and the mounting unpaid bills linked to the old Petroleum Equalisation Funds highlight the tangible impact on stakeholders in the downstream sector.
