IPMAN allays marketers’ fears about PIA, says claims in PEF intact

The Independent Petroleum Marketers Association of Nigeria, IPMAN has appealed to the Federal Government to stay action on the implementation of the new ex-depot price.

The national president of the Independent Petroleum Marketers Association (IPMAN), Engr. Sanusi Fari, has allayed fears of members over the scrapping of the Petroleum Equalisation Fund by the federal government.

It was widely reported on Wednesday that the federal government had officially scrapped the Department of Petroleum Resources (DPR), Petroleum Products Pricing Regulatory Agency (PPPRA) and the Petroleum Equalisation Fund (PEF).

PEF is the special intervention fund put in place by the federal government with the mandate to ensure price uniformity of petroleum products across the country, through the reimbursement of marketers for losses they incur in trucking products from depots to their filling stations anywhere in Nigeria.

The action of the federal government is premised on the passage and implementation of the Petroleum Industry Act (PIA) passed into law by President Muhammadu Buhari after both chambers of the National Assembly had passed, clause by clause, the Petroleum Industry Bill.

Two new agencies, the Upstream Regulatory Commission and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NPRA) have since been saddled statutorily to perform the duties of the three defunct agencies.

Findings revealed that the leadership of the defunct agencies are now technically handing over to their successors put in place by the minister of state for petroleum, Timipre Sylva, at the Wednesday inauguration.

To this effect, IPMAN president, Fari, in a statement made available to newsmen in Abuja said there was no truth in the claim by certain downstream oil sector industry operators that with the scrapping of PEF, the outstanding bridging claims owed marketers would not be paid.

While urging his members not to panic, Fari maintained that the association had what it takes based on its close working relationship with the leadership of National Association of Road Transport Owners (NARTO) and the National Union of Petroleum and Natural Gas (NUPENG) to ensure that payment of marketers bridging claims owed by PEF was not lost.

“Following the scrapping of the three federal government agencies, I wish to inform our teeming members nationwide that there should not be any apprehension over the fate of our businesses most especially, the marketers’ funds still being held by the PEF,” he said.

“The PIA provides for the establishment of Upstream Regulatory Commission (UPR) and Midstream and Downstream Regulatory Authority (MDRA) which the Hon. Minister of State had announced their respective CEOs as Mr. Gbenga Komolafe and Mr. Farouk Ahmed. We congratulate them and wish them success.

“Therefore, DPR, PEF and PPPRA have been collapsed into these two newly established agencies to still cater for the needs of our members.

“On behalf of the National Executive Committee (NEC) of IPMAN, I call on our members not to panic. Kindly continue to serve the general public in the interest of our country,” he said.

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