As the scarcity of Premium Motor Spirit, also known as petrol, persisted on Sunday, oil marketers predicted that the price of the commodity would exceed N800/litre once the PMS subsidy was removed.Information Guide Nigeria
The high cost of petrol subsidies, according to industry operators, was a burden on the Nigerian National Petroleum Company Limited and contributed to the prolonged crisis in the downstream oil sector. NNPC is Nigeria’s sole importer of gasoline.
Zainab Ahmed, Minister of Finance, Budget, and National Planning, recently suggested that the government gradually withdraw PMS subsidies, emphasising that the budgetary allocation for subsidies would expire in June.
Other Top Stories:
- Interest rate hike likely as MPC meets today
- FG hands over Ahmadu Bello Stadium to Kaduna
- Fitch predicts slow economic growth for Ghana in 2023
- Gunmen miss Rev Father, abduct Catechist in Kaduna
However, oil marketers told our correspondent that while it may be prudent to remove the subsidy, Nigerians should be aware that the price of petrol could rise to N800/litre once it is no longer subsidised.
They urged the Federal Government to ensure that all necessary measures and infrastructure were put in place to ensure a less stressful subsidy removal regime before implementing the decision.
“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),” the Secretary, Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja, Mohammed Shuaibu, stated.NYSC portal
He added, “If the government removes subsidy, where is the product? If you are removing subsidy, maybe by that time, the way diesel is sold at between N800 – N900/litre, we could be buying petrol at N800/litre, if not more than that.
“This is because the product will be scarce, even from the government cycle. So the government should tell Nigerians the truth about this fuel supply crisis. It is not a problem caused by marketers.”
Shuaibu said oil marketers were ready to sell, stressing that when marketers got products a few weeks ago, the queues disappeared.
“But as it is today, you have black marketers everywhere selling with jerrycans and you will ask, where are the security agencies and the regulators?” he asked.
The IPMAN official added, “By tomorrow they will claim that it is the fault of the marketers. How? We are businessmen and every businessman wants to make a profit. You know the law of supply and demand. When the product is scarce, prices will rise, and vice versa.”
He explained that the downstream sector was not structured for adequate competition, adding that this could also pose challenges when subsidy was eventually removed.
He said, “By the time you are removing subsidy, you should know that the market is not properly opened and there is no competition. They always tell you about Dangote Refinery. We must understand that Dangote is a privately owned company.
“The pipelines of that facility were not even designed to run in any Nigerian state, rather it was designed to run to neighbouring countries, and maybe that one in Lekki there, that is all.
He continued, “We can see, for instance, the competition in the telecommunications sector today. But the government will continue to deceive us that Dangote Refinery will come on stream, when we know that it cannot really solve the problem.”JAMB Result
Check: JAMB Result
Check and Confirm: How much is Dollar to Naira today
