The Independent Petroleum Marketers Association of Nigeria (IPMAN) disagrees with Tinubu’s claims that the pump price of premium motor spirit (PMS), which most people call Petrol, will not go up anymore.
Tinubu’s spokesman, Ajuri Ngelale, told reporters from State House on Tuesday that rumors that fuel prices would go up even more because the dollar rate was going up were not true.
But IPMAN chairman in Rivers State, Dr. Joseph Obele, told reporters in Port Harcourt on Wednesday that the claim shows that the Tinubu government doesn’t understand the basics of how the economy works.
Obele said that Tinubu’s claim would only be true if the Federal Government secretly brought back subsidies to cover the extra costs that fuel importers were complaining about.
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IPMAN President also said that importers of petroleum products from the foreign market have stopped doing so at the moment and that the country is now running low on petroleum products.
The head of IPMAN said, “This statement is a clear sign that Nigeria’s leaders don’t know the basics of economics.”
Theoretically, there is no idea or theory about the economy that would support that statement.
“Tinubu took away fuel subsidies, which means that the product is no longer controlled. In a market economy, prices are not set or controlled. Instead, they are kept in check by market forces.
“Petroleum exporters said last week that the landing cost for PMS has gone up to more than 700 because the foreign exchange rate is high, but you say that the price of gasoline won’t go up. There is no way that could happen.
“That statement from the Tinubu camp is only possible if the federal government secretly reintroduces subsidy payments for the higher costs that importers have complained about.”
“Otherwise, the people who buy oil on the foreign market will stop bringing it in. I’ve heard from a reliable source that they’ve stopped. We have a shortage of something right now. Right now, there isn’t enough to go around.
“Most importers and stores raised their prices yesterday, August 15th, but someone is telling us that the price of gasoline won’t go up.
IPMAN President said “I think they tell us what we want to hear in order to make us feel better, but what is the truth? As long as we keep bringing things in from other countries, costs will stay the same because of things outside of our country.
“External factors are impossible to control. Since no one can control these outside factors, no one should be able to tell Nigerians that prices won’t go up.
“Can you stop the war between Russia and Ukraine or the rise in the foreign exchange rate that is making oil goods more expensive? If not, how can you keep the price of PMS on the foreign market from going up?
The IPMAN President concluded by saying “It’s better for us as a country if we fix our plants as soon as possible. Then we can control the price of PMS in our own area.”