The Independent Petroleum Marketers Association of Nigeria, IPMAN has said that the private sector investment will force petrol price to go down soon.
THE PUNCH reports that the Independent Petroleum Marketers Association of Nigeria, IPMAN has said that the price of Premium Motor Spirit also known as petrol is set to dwindle as private investors come into the oil sector.
This was disclosed at a press conference organised by the National President of the association, Chinedu Okoronkwo, in Abuja on Wednesday.
Okoronkwo restated the association’s support of fuel subsidy removal by President Bola Tinubu while expressing optimism that the action will unbundle the downstream sector because it has opened the door for more private investors to come in.
“Our association has the numerical strength to force down the price of fuel once they start independent importation of the product,” he said.
Speaking further, the IPMAN president said the association has decided to use Compressed Natural Gas as an alternative energy source to cushion the effect of subsidy removal, adding that its adoption will serve as an alternative fuel that would bring a better and long-lasting solution to the constant fluctuation in the price of petrol in the global market.
In the meeting, IPMAN also agreed to revive the CNG conversion programme earlier agreed upon with Labour centres in 2021 and work out detailed implementation and timing.
CNG, which is a gas mainly composed of methane and produces less emission, is the cleanest burning fuel operating today with less vehicle maintenance and longer engine life.
Okoronkwo, who had supported the removal of subsidy and usage of CNG said bringing CNG which was cheaper than even firewood as an alternative energy would create relief for the government and its citizens.
He said the removal of subsidy was necessary because of the preferential for dollar which was so hard, adding that there was no crude refining in Nigeria, rather we produced.
“We have also discovered that bringing an alternative that is cheaper than even firewood which is CNG will not only create relief for the government and its citizens but is environmentally friendly.
“The CNG is abundantly available in Nigeria than anywhere in Africa.
“In Niger-Delta region you see billions of tonnes of gas flare being wasted daily, these are huge amounts that should be accruing to our GDP but we are wasting it because there is no market for it.
“So we are asking the government to create the market. How do you create the market?
“What Egypt and India did was to give soft loans to be paid back within stipulated periods from there you can get vehicles to use gas instead of fuel,” he added.