The Independent Petroleum Marketers Association of Nigeria (IPMAN) has disputed the claim made by the Presidency that the price of petrol would not be raised further.
Recall that, a presidential spokesperson, Ajuri Ngelale, had while briefing State House correspondents on Tuesday, denied any plans to increase the price of petrol due to the rising dollar rate.
He asserted that the government was committed to maintaining the current price, and dismissed any rumors or speculation to the contrary.
However, speaking to the media in Port Harcourt on Wednesday, the IPMAN chairman in Rivers State, Dr. Joseph Obele, said that the claim by the Presidency demonstrated a lack of understanding of economic principles.
He explained that in order for the current petrol price to be maintained, the Federal Government would need to reintroduce subsidy payments to cover the increased costs faced by fuel importers.
Obele also noted that due to the rising dollar rate, importers of petroleum products have stopped importing fuel, leading to a shortage of supply in the country.
He went on to say that the statement made by the Presidency was not based on sound economic theory, and that it was “a clear indication that the leadership of Nigeria lacks basic knowledge of economics.
“Mr President has earlier removed fuel subsidy, this implies that the commodity is now a deregulated product. Prices in a deregulated economy are not benchmarked or controlled, rather they are moderated by market forces.
“Petroleum importers have announced last week that landing cost for PMS has increased above ₦700 because of high rate of foreign exchange, yet you are saying petrol price won’t increase. That is not possible in any way.
“That statement from Presidency can only be possible if the federal government will secretly re-introduce subsidy payment for the additional cost as lamented by the importers
“Otherwise, the importers of petroleum products from the international market will pause further importation. I can tell you on good authority that they have suspended. We are currently experiencing a supply gap. There is shortage of supply at the moment.
“Majority of the importers and depots have announced price increment yesterday Tuesday 15th August, yet someone is telling us that petrol price won’t increase.
“I think they tell us what we want to hear to calm us, and what what is the reality? As long as we keep importing from the international market, then prices will reflect as such because of external elements.
“External elements are uncontrollable, since no man can control such external variables, then no one should have the capacity to lie to Nigerians that price will not be increased.”