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Incessant price hike may undermine success of subsidy removal – IPMAN

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The Independent Petroleum Marketers Association of Nigeria, lPMAN, says continual hike in price of petroleum products by the Nigerian Midstream and Downstream Petroleum Regulator, NMDPRA, may hamper the success of oil subsidy removal.

The National President, IPMAN, Alhaji Debo Ahmed, made the observation in a statement he issued to newsmen on Tuesday in Lagos, adding that the increase could also adversely affect the overall business environment of the downstream sector.

According to him, the arbitrary and excessive nature of the increment not only discourages potential investors, but also creates barriers for fresh investors.

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He said the resultant cost is transferred to the consumers and the general public.

“Those that are already in the business will pass the burden to the consuming public and this affects the cost of products.

“I think NMDPRA, as an agent to the Federal Government, should advise them on the way to succeed on this removal of oil subsidy,” he said.

Ahmed explained that the recent hike in diesel pricing and the mounting unpaid bills emanating from the old Petroleum Equalisation Funds demonstrate the tangible impact on stakeholders in the downstream sector.

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