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IPMAN rejects scrapping of Petroleum Equalization Fund

The Petroleum Equalization Fund (PEF) has been proposed to be scrapped, but the Independent Petroleum Marketers Association of Nigeria (IPMAN) has rejected it, claiming that it promotes national unity.

Mr Chinedu Okoronkwo, the President of IPMAN, told the News Agency of Nigeria (NAN) in Lagos on Tuesday that PEF was crucial as the country moves toward full deregulation of the petroleum downstream sector.

Some stakeholders' recommendations that the PEF be scrapped were criticized by Okoronkwo.

He pointed out that this was uncalled for because the funds used to make the PEF work effectively came from the Product Marketing Companies' revenue pool.

PEF is a fund manager who manages our money, according to Okoronkwo. The government does not provide them with any funds, so they must rely on the funds of marketers. To bring the country together, there must be some semblance of uniformity in the prices of petroleum products across the board.

For example, the price of a particular soft drink is the same across the country, thanks to internal company equalization.

As a result, we believe PEF is very important, and they should continue to help us. We're not saying there shouldn't be a price difference, but it should be small.

He also urged the government to level the playing field in the downstream sector by providing foreign exchange at the same rate as the Nigerian National Petroleum Corporation for marketers to import fuel.

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IPMAN Independent Petroleum Marketers Association of Nigeria Lagos PEF Petroleum Equalization Fund

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