Oil marketers have urged President Bola Tinubu to gradually ease the removal of subsidy on Premium Motor Spirit, commonly known as petrol. This plea comes as importers face difficulties in accessing US dollars, which is having a negative impact on businesses.
However, petroleum product marketers have advised the President to take a lesson from Kenya, where the government had to reintroduce subsidies on petrol due to the devastating effects of its removal on the citizens. Mohammed Shuaibu, the Secretary of the Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja, stated, “Let them not do the needful, they will see the consequences. We learned this morning that Kenya, which equally removed subsidy and noticed that its effect was so hard on the citizens, has again resumed the subsidy regime for the period of two months.”
Shuaibu stressed that the government should consider the welfare of its people, highlighting the fact that Nigeria, as an oil-producing nation with four refineries, should not be dependent on imports. He also pointed out that the cost of petroleum products in Nigeria is largely dependent on the foreign exchange rate, which is why marketers are reluctant to import products. Shuaibu urged the government to urgently reconsider the removal of subsidy.
Despite the Nigerian National Petroleum Company Limited stating that it has no plans to raise the price of petrol, Shuaibu argued that if the exchange rate continues to increase, the cost of the commodity will inevitably rise above the current price of N617 per litre in the coming weeks. He also mentioned that some oil marketers are willing to join the labor union in protesting against the removal of subsidy.
Chinedu Ukadike, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, warned that removing the subsidy without any palliatives in place would result in severe hardship. He emphasized the rise in prices of goods and services, such as transportation, as a direct consequence of the removal of subsidy.
Ukadike further explained that the prices of imported commodities, including petrol, will continue to increase as long as the exchange rate of the dollar rises. He called on the government to intervene immediately to alleviate the suffering and prevent further economic decline.
As the debate over the removal of subsidy on petrol continues, oil marketers are voicing their concerns and urging the government to reconsider its stance. The impact of this decision on the economy and the livelihoods of Nigerians cannot be overlooked. It remains to be seen whether the government will heed the call to relax the removal of subsidy and find alternative solutions to cushion the effect on the citizens.
