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Petrol may sell for N400 per litre if PEF is scrapped – Marketers warn FG

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned against proposed plans to scrap the Petroleum Equalisation Fund (PEF).

The association said Nigerians in many parts of the country would be forced to buy petroleum products for as much as N400 per litre if the PEF is scrapped, Daily Trust reports.

It is meant to ease up additional money of the product especially for those who have to transport the product over long distances.

It is reportedly administered by the Ministry of Petroleum.

IPMAN’s national secretary Danladi Pasali said scrapping the fund would put the petroleum sector in crisis and harm the nation and its stability.

Pasali in a statement accused some unnamed “political elites” of trying to mislead the federal government to scrap fund.

He said the move may destabilise and sabotage the successes being recorded in the petroleum sector.

IPMAN, therefore, advised the government not heed to the call, reiterating that the move is against the progress, wellbeing and economic advancement of the country.

Meanwhile, the federal government has explained its stance regarding the knotty I of petroleum products deregulation.

Timipre Sylva, minister of state for petroleum, in a statement he personally signed on Wednesday, July 8 explained that the federal government concluded that it was unrealistic to continue with the burden of subsidizing PMS to the tune of trillions of naira every year.

According to him, the decision was taken after a thorough examination of the economics of subsidising PMS for domestic consumption.

He also stated that the subsidy was benefiting the rich rather than poor and ordinary Nigerians.

The minister, however, said the government was mindful of the likely impact of higher PMS prices would have on Nigerians, adding that to alleviate the impact, the ministry will roll out the auto-gas scheme, which will provide Nigerians with alternative sources of fuel and at a lower cost.