Deregulation Will Make Petrol Available, Affordable – IPMAN | Independent Newspapers Limited
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Deregulation Will Make Petrol Available, Affordable – IPMAN

Posted: Jul 1, 2015 at 12:09 am   /   by   /   comments (0)

Independent Petroleum Marketers Association of Nigeria (IPMAN) has advocated for the deregulation of the downstream sector of the petroleum industry, saying such a move would make the premium motor spirit (petrol) available to consumers and at a cheaper rate.

IPMAN President, Chinedu Okoronkwo, said in Abuja that deregulation remains the way forward for the government as it would encourage competition in the sector and eventually lead to investments into local refining of crude.

Okoronkwo explained that the moment “PMS is deregulated, the group we are working with will flood this nation with petrol and with competition it will become accessible and affordable.

“There will be competition and healthy competition. And with NNPC which is owned by government competing with other companies it will ensure that prices do not get out of hand. When the refineries are repaired and the pipelines are working products will become available in all nooks and crannies of the country and government can save the huge money they are spending on the importation of fuel.

“People will also now be motivated to set up modular refineries which can refine 5, 000 to 20000 barrels per day. Before major refineries like Dangote will begin to come onboard,” he said.

He said IPMAN do not believe in the constant strikes that have disrupted the sector, and urged government to deregulate the sector.

He said the group was also making moves to establish its own refineries, disclosing that land for the project had been acquired.

“Our foreign partners came into this country and we went to the government of Kogi state because we have a proposal for two refineries and if not for the general elections we would have gone far.

“The Kogi government gave us about 1300 hectares of land to build the refineries. So far we have done the perimeter survey and the paper work is on-going. So, we have the land and we are talking to JP Morgan and KPMG.

“Last week we wrote to the CBN and they gave us the guidelines because we want to bring in money, about $3b,” he said.