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IPMAN rejects scrapping of Petroleum Equalisation Fund

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IPMAN rejects scrapping of Petroleum Equalisation Fund

Independent Petroleum Marketers Association of Nigeria has rejected scrapping of the Petroleum Equalisation Fund, asserting that it fosters national unity.

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IPMAN’s President, Mr Chinedu Okoronkwo, told the News Agency of Nigeria (NAN) on Tuesday in Lagos.

He said that PEF is relevant as the country was progressing towards the full deregulation of the petroleum downstream sector.

NAN reports that PEF was set up by Decree 9 of 1975 (as amended by Decree Number 32 of 1989 now chapter 352 of the Laws of the Federation). Its main function is to ensure price uniformity of petroleum products via the reimbursement of marketers for losses they incur in trucking products from depots to their filling stations anywhere in Nigeria.

Okoronkwo said recommendations by stakeholders that the PEF should remove from the draft of the Petroleum Industry Bill

“Funds employed in making the PEF work effectively were sourced from the revenue, generated by the Product Marketing Companies.

Okoronkwo said: “PEF are fund managers and they manage our money. The government is not giving them money in any way and what they are working with is marketers’ money.“In order to unite the country, there must be a semblance of uniformity in prices of petroleum products all over.

“For instance, the price you buy a particular soft drink is the same all over the country and that is internal equalisation by the companies.

His words, “So, we believe PEF is very relevant and they should continue to do this for us. We are not saying that there should not be a difference in prices but it should be minimal.

He also urged the government to create a level playing field in the downstream sector by providing foreign exchange for marketers to import fuel at the same rate given to the Nigerian National Petroleum Corporation.

“FG allowed Marketers to go out and bring in petrol instead of the only NNPC importing the product.

“This will encourage competition and drive the price down. There are many areas that cost can go down when allowed to import.

“Some marketers already have their own vessels which may reduce the freight cost. What we want is for the government to allow the full deregulation of the sector and allow market forces to determine the price.”

IPMAN rejects scrapping of Petroleum Equalisation Fund(NAN)

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