Petrol: Oil Marketers Demand Scrapping Of PEF

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged to the Federal Government to scrap the Petroleum Equalisation Fund (Management) Board (PEF), and in its place make the 21 petrol depots across the country functional and accessible to oil marketers.
The IPMAN National Publicity Officer, Elder Ukadike Chinedu, told journalists at the weekend in Abuja that bringing the products closer to marketers would eliminate the need for PEF.
He spoke in the wake of government’s indecisiveness over the pump price of petrol that has left consumers confused and jittery.
Ukadike explained that the scrapping of PEF “also entails full deregulation of the down-stream sector. Before the implementation of the policy, the government should ensure that petroleum products are pumped into every nook and cranny of the nation first.
“The government must make sure that all the depots and facilities of the Nigerian National Petroleum Corporation (NNPC) are functional. It should also ensure efficient infrastructural provision such as the railway system, to transport products from Lagos to other areas.
“That will make the price of the product to come down. That is normal; demand and supply will determine the price. When you scrap PEF, it means there is full blown deregulation. The nearest the product is to all consumers, the better. That means the product will be everywhere in the country”, he added.
He explained further, “If I am loading in Aba and there is product in Aba depot what will be the essence of PEF? We marketers are also paying NTA, if there are products in all the depots, you wouldn’t even see trucks on the road. Unfortunately, the funds that PEF is managing belong to the independent marketers because once PPPRA brings out its template the cost is included.
“For instance, in the last one it was N4.60 per litre, it is deducted from source. Is it not better that marketers are given promissory note, when you get to your destination you send it to your bank. As I speak with you PEF is holding our money for up to two years without payment”.
He decried the uncoordinated manner in which government’s deregulation policy was being implemented, saying it has left oil marketers without resources to run their operations.
“Let me tell you that we have become service oriented companies we are no longer talking about profit, we are just trying to stay in business. Unfortunately, the government is not thinking about the continuity of marketers in business.