Fuel Price Reduction: IPMAN Decline Immediate Implementation of N123.50 new price

The Independent Petroleum Marketers Association (IPMAN) had on Wednesday asked its members not to comply with the N123.50 new pump price adjustment until the old stock is exhausted.

The development is coming after the Petroleum Products Pricing Regulatory Agency (PPPRA) had on Tuesday announced another reduction of pump price from N125 per litre to 123.50 Per litre.

The adjustment is coming less than two weeks after the Federal government dropped the pump price from N145 to N125.

The price modulation became unavoidable following the drastic slum in the price of crude oil on the international market, occasioned by the global pandemic of coronavirus (COVID-19).

In a press conference held in Kano, the Kano chairman of IPMAN, Bashir Ahmad Danmallam, noted that, IPMAN had directed members to dispose their products at N125 per litre and insisted that until “the last drop of old stock is exhausted, no one will stock in debt to dispense at N123.50”.

He disclosed that IPMAN as the largest employer of labour asides the Federal Government will not continue to operate at loss.

The Kano Chairman of the Association accused the management of the PPPRA of trying to sabotage the Federal Government’s efforts to ensure sustained fuel supply and distribution across the country through some policies that could plunge the sector into crisis.

According to him, “the last time the Federal Government reduced the pump price of the product from N145 per litre to N125 per litre, our members nationwide lost over N5.5 billion as a result of the sudden reduction.

“We called on government to compensate or supports for our members who are already in huge loss due to the sudden reduction in fuel pump price but nothing was given to us.

“But to our surprise, the private depots owners were paid but none of our members was supported to reduce the losses we incurred. This time around we will not sell our products until the old stocks are exhausted.

“Apart from the Federal Government, IPMAN is the largest employer of labour in the country and we cannot afford to continue to support the government at this trying time while as business people we are operating at loss,” Danmalam said.

“Even though we are happy with the new development and the Federal Government should be commended for the gesture but the government should consider the fact that no sane marketer or businessman will continue operating his/her business at loss.

“Before the last announcement, many of our members have already bought and loaded their vehicles with the product at old prices from Lagos, Port Harcourt and Warri and we spend five to seven days before reaching our destinations.So we are not going to sell the product at the new price until we sell the old stocks.

“We hope the Federal Government will see reason and come to the aid of our members as it supported private depots because our members will not continue to operate at loss”.

He threatened that the union would not hesitate to ask its members to withdraw their services if any filling station is closed for refusing to comply with the N123.50 new pump price.

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