The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said that the price of Premium Motor Spirit (PMS) also known as petrol will drop as private investors make their way into the industry with the removal of subsidy.
Speaking to journalists in Abuja, Chinedu Okoronkwo, National President IPMAN said the removal of subsidy by President Bola Tinubu, will unbundle the downstream sector as it gives way for more private investors to come in.
“Our association has the numerical strength to force down the price of fuel once they start independent importation of the product,” he said.
The IPMAN president said that using Compressed Natural Gas as an alternative energy source will cushion the effect of subsidy removal, adding that its adoption will provide a better and long-lasting solution to the constant fluctuation in the price of petrol in the global market.
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IPMAN also agreed to revive the CNG conversion programme earlier agreed upon with Labour centres in 2021 and work out detailed implementation and timing.
CNG, which is a gas mainly composed of methane and produces less emission, is the cleanest burning fuel operating today with less vehicle maintenance and longer engine life.
He said CNG as a cheaper alternative energy source would provide relief for the government and its citizens, adding that it is abundantly available in Nigeria.
Okoronkwo, who had supported the removal of subsidy said the removal was necessary because of the preferential for dollar which was so hard, adding that there was no crude refining in Nigeria, rather we produced.
“In Niger-Delta region you see billions of tonnes of gas flare being wasted daily, these are huge amounts that should be accruing to our GDP but we are wasting it because there is no market for it, So we are asking the government to create the market,” he said.
