Marketers set agenda for govt on petrol subsidy removal

Marketers under the umbrella of Independent Petroleum Marketers Association of Nigeria (IPMAN) and Major Oil Marketers Association of Nigeria (MOMAN) yesterday advised the Federal Government on what it should do before removing the subsidy on the Premium Motor Spirit (PMS).

The Federal Government had announced that it would remove petrol subsidy next month.

For the IPMAN, the government should not remove subsidies while depending on petrol import. Its President, Alhaji Debo Ahmed, who spoke with The Nation on telephone yesterday, urged the government to ensure domestic refineries were producing before removing the subsidy.

According to him, deregulating the PMS with imported fuel would culminate in higher costs because of the exchange rate.

The IPMAN boss said: “Normally, the removal of the subsidy of imported product will be left at the vagaries of Naira/Dollar exchange. If the government just removes the subsidy in such a way that is going to be on importation, it will not augur well because the prices will be going up.

“The whole thing they can do is to ensure that some of these refineries are working since we have the crude.’’

“It is either the national refineries of private modular refineries or Dangote refinery, some of these refineries in Nigeria should be working so that the cost will not be too much for the ordinary citizen.”

Ahmed noted that the marketers were yet to know of any government intervention or palliatives targeted at cushioning the impact of subsidy removal.

Allaying fears that marketers will form some cartel that will not allow a competitive market driven by forces of demand and supply, he said when the product is available, marketers cannot fix its price.

He cited an example of the deregulated Automotive Gas Oil (AGO) that its price is competitive stressing that only lower prices will enhance higher demand.

Ahmed however urged the Federal Competition and Consumer Protection Commission (FCCPC) to be alive to its responsibility to prevent any cartel against competitive petrol prices.

He said: “The only thing they can do again is to make sure the consumer protection agency is doing its job to protect some of these consumers. It is only when there is no product that you have that problem.”

Similarly, the MOMAN Executive Secretary, Mr. Clement Isong who spoke with The Nation on phone, urged the government to activate FCCPC to ensure that no cartel suppresses the forces of demand and supply when petrol is deregulated.

He said: “That is the job of the FCCPC. That is the job of the authority to clampdown on marketers and make sure it doesn’t happen.”

Isong admonished the government to engage the citizens before the subsidy removal.

According to him, the government needs to inform the people on what it will use to cushion the effects of subsidy removal.

He sought for the provision of cheaper mass transportation vehicles, buses that can lessen the fares.

His words: “I think the government should before the deregulation need to engage the Nigeria people. It needs to tell the people what they are going to use to cushion the effects.

“And it needs to begin to put those palliatives in place. Palliatives like to reduce the cost of transport

“Government needs to be clear on what palliative it’s putting in place and it needs to communicate the palliatives.

“The government needs to communicate what it will do while removing the subsidy.”