As the scarcity of Premium Motor Spirit (PMS), commonly known as petrol, persisted on Sunday, oil marketers warned that the price of petrol could exceed N800 per litre once the subsidy on PMS is removed. Industry operators have consistently pointed out that the high cost of petrol subsidies is a significant burden on the Nigerian National Petroleum Company Limited (NNPC) and has contributed to the ongoing crisis in the downstream oil sector. As the sole importer of petrol into Nigeria, NNPC plays a crucial role in the market. Recently, the Minister of Finance, Budget and National Planning, Zainab Ahmed, suggested a gradual withdrawal of the subsidy on PMS, emphasizing that the budgetary allocation for the subsidy would conclude in June.
Oil marketers conveyed to our correspondent that while the removal of the subsidy might be advisable, Nigerians should be prepared for the possibility of petrol prices soaring beyond N800 per litre once the subsidy is lifted. They urged the Federal Government to implement necessary measures and infrastructure to facilitate a smoother transition away from the subsidy before making any decisions. Mohammed Shuaibu, the Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN) in Abuja-Suleja, expressed concerns about the potential consequences of subsidy removal without adequate preparations. He stated, “If the government fails to take the appropriate measures, and they say they want to remove fuel subsidy, the situation will be worse than this; the masses will suffer. How can you remove subsidy and you don’t have this product (petrol)?”
Shuaibu further questioned the government’s ability to ensure a stable supply of petrol if the subsidy is removed. He pointed out that diesel is currently sold for between N800 and N900 per litre, suggesting that petrol prices could follow suit due to scarcity. He emphasized the need for transparency regarding the fuel supply crisis, clarifying that it is not a problem caused by marketers. He noted that oil marketers are willing to sell petrol, as evidenced by the disappearance of queues when products were available a few weeks ago. However, he lamented the prevalence of black market sales and questioned the role of security agencies and regulators in addressing the issue.
Shuaibu also highlighted that the downstream sector is not structured for adequate competition, which could create challenges when the subsidy is eventually removed. He criticized the reliance on Dangote Refinery, stating that it is a privately owned facility designed primarily for export rather than domestic supply. He argued that without competition, the market would be vulnerable to exploitation, as the sole supplier would dictate prices. He compared the situation to the telecommunications sector, where competition has led to better services and prices. He cautioned against over-reliance on Dangote Refinery, asserting that it would not resolve Nigeria’s fuel supply problems.
Meanwhile, the ongoing scarcity and rising prices of petrol have sparked outrage among consumers, particularly motorists, who have directed their frustration at the ruling All Progressives Congress (APC). Although the official price of petrol is set at N185, many filling stations across the country are selling it at significantly higher prices, contributing to long queues that exacerbate traffic issues. One Instagram user, @paschal_dheyvid, reported paying N200 per litre and an additional N1,000 just to enter the filling station, only to face a lengthy wait. Similarly, a Twitter user, @thatboyyouhate, recounted being charged N1,000 for access to a filling station for a 25-litre keg.
Other users shared their experiences, with one Instagram user, @charlessoronnadimotors, stating they purchased petrol for N420 per litre in Aboh Mbaise, Imo State. Another Twitter user, @supapraise, described spending 11 hours in line at an NNPC filling station in Port Harcourt, where he ultimately bought petrol for N189 after a price adjustment. Expressing discontent with the APC, one user, @RexAgu1, lamented, “N360 per litre. APC has failed the unborn kids. They have removed subsidy without letting Nigerians know.” Another user, @King_Olivertwit, sarcastically remarked that APC supporters were purchasing petrol for N50 per litre while others faced prices as high as N500.
Pascal Nwankwo, @pascalnwankwo7, attributed the situation to the APC, criticizing those who continue to support the party. On Instagram, user @malaro44 expressed anger towards those campaigning for the APC, wishing hardship upon them for their continued support. Efforts to obtain a response from the National Publicity Secretary of the APC, Felix Morka, were unsuccessful, as his phone was busy, and he did not reply to a text message sent by our correspondent.
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