Petroleum Products Prices Sizzle as Regulatory Costs Spike 600%: IPMAN Blames NMDPRA
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has thrown fuel on the fire of rising petroleum product prices, pointing the finger at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for a staggering 600% increase in tariffs since 2020.
Tariff Tsunami Hits Pump Prices:
Alhaji Debo Ahmed, IPMAN National President, unleashed a statement in Lagos, blaming the NMDPRA’s “arbitrary and excessive” tariff hikes for pushing up operational costs and ultimately, petrol prices. This regulatory rollercoaster, he argues, discourages new entrants and burdens existing businesses, forcing them to pass the buck to consumers.
Calibration Fees Explode, Squeeze Margins:
Ahmed painted a clear picture of the financial squeeze, citing a skyrocketing calibration cost per tank, from N20,000 to a jaw-dropping N150,000 – a 650% hike! Pressure testing faced a similar fate, ballooning from N20,000 to N150,000 per tank.
License Renewal Bites, New Stations Sizzle:
The tariff woes spill over to licenses, with renewals for existing stations exceeding N2 million and new stations facing a potential N4 million hurdle. To add fuel to the fire, a newly imposed 5% tax on station sales and acquisitions threatens to dampen market activity further.
Deregulation Dreams Drowned in Costs:
Ahmed lamented that these sky-high tariffs contradict the very goals of deregulation – attracting investment, fostering competition, and ensuring product availability. Instead, he warned, the current trajectory risks squeezing out smaller players and leaving consumers facing a limited market with higher prices.
IPMAN’s Call: Regulate with Reason, Not Recklessness:
Ahmed’s message to the NMDPRA is clear: review the tariff hikes, prioritize investor-friendly policies, and remember that regulatory costs shouldn’t become a burden that ultimately consumers, the engine of the market, have to bear
Source: Nairametrics
