The Independent Petroleum Marketers Association of Nigeria has rejected the proposed scrapping of the Petroleum Equalisation Fund.

On Tuesday, IPMAN’s President, Chinedu Okoronkwo, said PEF was relevant with the country progressing towards full deregulation of the downstream sector.

PEF was set up by Decree 9 of 1975 (as amended by Decree Number 32 of 1989, now chapter 352 of the Laws of the Federation) to ensure price uniformity of petroleum products via the reimbursement of marketers for losses they incur in trucking products from depots to their filling stations anywhere in Nigeria.

Mr. Okoronkwo faulted some stakeholders’ recommendations that the PEF should be scrapped in the Petroleum Industry Bill’s draft before the National Assembly.

He explained, “PEF are fund managers, and they manage our money. The government is not giving them money in any way and what they are working with is marketers’ money.

“In order to unite the country, there must be a semblance of uniformity in prices of petroleum products all over.

“For instance, the price you buy a particular soft drink is the same all over the country, and that is internal equalisation by the companies.”

“So, we believe PEF is very relevant, and they should continue to do this for us. We are not saying that there should not be a difference in prices, but it should be minimal.” Mr. Okoronkwo added.

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

“We are saying that marketers should be allowed to go out and bring in petrol instead of only the NNPC importing the product,” he explained.

(NAN)