Do you know that if the Nigerian government removes fuel subsidy the pump price of fuel will increase?
With this increase, a lot of people might no longer be able to afford the quantity of the product needed to get by on a daily basis.
However, in what looks like an intervention on the part of the the Independent Petroleum Marketers Association of Nigeria (IPMAN), they have requested the release of a ₦250 billion intervention fund.
Also read: What Gbajabiamila Told Speakership Aspirants
In a request dated April 3, IPMAN urged the Federal Government to order the Central bank to release ₦250 billion intervention fund for the National Gas Expansion Programme.
IPMAN wants the government to release the ₦250 billion from CBN to car, tricycle and truck owners to convert to gas due to the projected hike in fuel after the proposed subsidy removal.
Palliative Solution
Subsidy removal has been projected to raise the cost of PMS, also known as petrol, significantly above the current pump price of ₦189 per litre.
IPMAN also said it would partner with Gas Analytics & Solutions Ltd to locate natural gas dispensers at over 30,000 filling stations in Nigeria.
“We are writing to request an audience with you to present a palliative solution to cushion the impact of the removal of the unsustainable petrol subsidy.
“Our partners, Gas Analytics & Solutions Ltd, have an agreement with the independent Petroleum Marketers Association of Nigeria to co-locate natural gas dispensers on our network of over 30,000 filling stations in Nigeria.
“This collaboration with IPMAN presents the most economic and expedient platform to deploy the necessary infrastructure to support a fast national roll-out of CNG (Compressed Natural Gas) for vehicles,” IPMAN said in a letter signed by its National President, Chinedu Okonkwo.
Reduce Need For Foreign Exchange
Part of the statement also read: “What is left is the support of the Central Bank of Nigeria to provide access to the Gas Expansion Fund for vehicles, Keke, and truck owners to access loans to finance the acquisition of natural gas conversion kits”.
The conversion to gas will increase demands that will enable oil marketers to set up more Compressed Natural Gas across fuel stations.
Explaining further, IPMAN highlighted that “without a large pool of CNG customers, we will not be able to raise the funds required to set up CNG filling stations”.
You should also read: Joeboy New Single ‘Duffel Bag’ Features BBNaija Allysyn
It said: “We believe that with the support of the Ministry of Finance, IPMAN’s partnership with Gas Analytics will provide a platform that can in a matter of a few months cushion the impact of petrol subsidy removal and significantly reduce the need for foreign exchange to import petrol.
“We request an audience with you to discuss this further and present our proposal.
“We look forward to hearing from you soon.
“Thank you for your time and consideration”.
