The Independent Petroleum Marketers Association of Nigeria (IPMAN) has dismissed claims of an impending increase in petrol prices nationwide.
According to IPMAN Chairman, Bashir Salisu Tahir, in an interview with Voice of America, it is market forces that now determine prices since the country now has refineries.
He assured the public that the operation of the refineries will contribute to a reduction in fuel prices.
Tahir also revealed that none of their members had increased the price of petrol across the country.
He said, “The market now determines prices, and there is no truth to the rumors of an increase in petrol prices. While diesel prices have risen recently due to market dynamics, they will naturally fall when market conditions improve.”
Petrol currently sells for at least N930 in filling stations across the country, with a high anticipation of a further price crash.
Similarly, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has explained that the pump price of fuel is henceforth dependent on the international price of crude.
Lokpobiri said this while briefing journalists after the inaugural Petroleum Industry Stakeholders’ Forum held by the ministry on Thursday in Abuja.
The forum offers the stakeholders an opportunity for broad assessment of the industry, aimed at identifying challenges and proffering appropriate solutions for the sector’s growth.
The minister reiterated the Federal government’s commitment towards ensuring quality control and availability of petroleum products in a deregulated sector.
He stressed that the price of petrol in a deregulated market is being dictated by the international crude oil price, noting that Nigeria would not be an exception.
“So, what we are concerned about and I always discuss with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPR), is that the government is more interested in quality control and availability.
“What the government is particularly interested in is disposition of the right quantity. If we buy 10 litres of fuel, let it be that we are not shortchanged by the fuel pump price; that is where we have issues.
“The essence of deregulation is for price to find its level. Before now, you were hearing negative news about fuel subsidy, but today, there is no news about fuel subsidy because the sector is completely deregulated.
“As the international oil price goes up, the fuel price may go up. As the oil price comes down, the price may come down.
“And once there is competition, people have a choice of fuel station to buy fuel, and this is why you cannot see any queues, which is the real essence of deregulation,’’ he said.
The minister emphasised the need to address the issues of policy conflicts and multiple taxes as well as levies in the sector.
He said the forum was aimed at bringing the entire leadership of the oil industry together to be able to form a common front and build a consensus around things that would better the industry.
“The whole idea is to have a one-stop shop where all stakeholders will gather and address issues concerning the oil industry and evolve policies,’’ he said.
Also speaking, Dr Billy Harry, National President, Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), expressed willingness to work with the government together to ensure energy security.
Harry, while thanking the minister and all industry stakeholders that had ensured that the forum was established, recommended that the forum should be convened quarterly in anticipation of favourable policies.