The Independent Petroleum Marketers Association of Nigeria (IPMAN) has explained that the increase in the pump price of petrol from N500 to over N617 was necessary for petrol marketers to remain in business. According to the President of IPMAN, Chinedu Okoronkwo, the removal of subsidy on petrol has caused many IPMAN members to go out of business as they were unable to raise money to load from depots and the Nigerian National Petroleum Company (NNPC) Limited.
Okoronkwo stated that with the price adjustment by the NNPC, independent marketers had to raise their prices at retail outlets to match the new reality. He emphasized the need for marketers to stay in business and sell their old stocks at the new price. However, he also called on the government to work on mitigating the effects of the price adjustment and easing the pressure on the dollar.
On the other hand, a former President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Peter Esele, criticized the IPMAN president’s stance, suggesting that petrol marketers were taking advantage of the situation to make extra profit. Esele argued that it would be morally right for marketers to sell their old stocks for the previous price.
The removal of subsidy on Premium Motor Spirit (PMS) or petrol was announced by President Bola Tinubu in his inaugural speech on May 29, 2023. Since then, the pump price of petrol has risen from N184 to N500 and subsequently to over N617, causing discontent among financially strained citizens.