The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned against removal of kerosene subsidy in the country, saying that its removal will lead to civil unrest in the country.
National President of IPMAN, Alhaji Aminu Abdulkadir disclosed this to journalists over the weekend. Abdulkadir also stated that marketers did not pay any bribe to government officials as alleged by a whistleblower last week.
He said kerosene subsidy should remain until Liquefied Petroleum Gas (LPG) was enough to bridge the supply gap.
His words: “Any removal of subsidy is a ploy to instigate uprising against government.”
“Until LPG is widely available, you cannot remove subsidy. If you do, it will bring social unrest. I strongly advise that subsidy should remain.
“I also call on the minister to call industry operators to order, so as to put in more efforts into the provision of LPG. Part of the subsidy should be used to fund facilities for LPG.”
On allegations that the subsidised kerosene was not getting to the poor, the IPMAN president denied such assertions, adding that the problem had to do with high demand over low supply.
“About seven to 10 million litres of kerosene are supplied, but our national consumption today is about 15 million litres. There is a shortfall in supply, hence the people think there is no subsidy. There is subsidy,” he said.
Speaking on the bribery allegations, he said, “some mischievous individuals are hell bent in turning the downstream petroleum industry into a political theatre, without minding the negative impact of such on the Nigerian economy.”
“All legitimate marketers lift product and sell at approved government’s price, in line with the directive of the Minister of Petroleum,” he declared.
He said IPMAN would sanction any marketer that sold above the suggested N50 retail price.
At the kick-off of NNPC/IPMAN Kero-Direct scheme in Lagos, at the weekend, the IPMAN boss said under the present scheme, the NNPC had allocated 5,000 metric tonnes (MT) to be sold in Lagos and its environs, as part of the directive by the Minister of Petroleum, Mrs Diezani Alison-Madueke, through the NNPC.
“The minister had directed that kerosene be sold to the Nigerian masses at the recommended retail price of N50 per litre.
“We are here in Lagos to supervise 20 filling stations that have received the product, to ensure that they sell at that price.
“Any marketer who may engage in sharp practice by selling above N50 per litre will be sanctioned accordingly,” he stated.