Fuel marketers sound the alarm, warn against tariff hikes - Ripples Nigeria
Connect with us


Fuel marketers sound the alarm, warn against tariff hikes



The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed concerns that proposed tariff increases on petroleum products could derail the success of the country’s ongoing subsidy removal policy.

In a statement on Tuesday, IPMAN President Debo Ahmed cautioned against further burdening the downstream oil sector with additional tariffs. He argued that such increases, on top of the already rising fuel costs, could have a “negative domino effect” on the industry’s overall business climate.

According to the IPMAN president, the ‘arbitrary and exorbitant nature’ of the increases burdens existing businesses and discourages new investors while also creating obstacles in the way of their entry

He said the public and consumers bear the brunt of the resultant cost.

Read Also: FG, states, LGAs share N1.12tr as revenue allocation for December 2023

“Those that are already in the business will pass the burden to the consuming public and definitely this affects the cost of products,” Ahmed stated.

“I think NMDPRA, as agent to the Federal Government, should advise them on the way to succeed on this removal of oil subsidy.”

Ahmed also said the recent increase in diesel pricing and the mounting unpaid bills emanating from the old petroleum equalisation funds (PEF) demonstrate the tangible impact on stakeholders in the downstream sector.

“In economics, payment of internal debts increase the economic activities of a country and lessen the attention given to the dollar,” he said.

“When internal economic activities boom, it generates employment and spurs up the value of the local currency.

“IPMAN, as an association, will advise the authorities to critically look into the tariff increase, which will not help the oil subsidy removal.

“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.”

IPMAN’s concerns underscore the delicate balance that the government must navigate in pursuing the removal of fuel subsidies.

Join the conversation


Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Exit mobile version