‘Open Up, Tell Nigerians The Truth About Subsidy Removal’ – Fuel Marketers Tackle FG

EKO HOT BLOG reports that fuel marketers have called on the Federal Government to provide transparency regarding its stance on fuel subsidy.

They assert that the government has quietly resumed subsidizing Premium Motor Spirit (PMS), commonly known as petrol.

They claim that this discreet return to fuel subsidy has prevented the price of petrol from surging in recent weeks, despite the depreciation of the Naira against the US dollar and rising crude oil prices on the international market.

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Industry experts point to the recent surge in Brent crude oil prices, reaching $94 per barrel, the highest since the beginning of 2023. Additionally, the weakening Naira exchange rate, hitting N950 to the dollar, suggests that petrol prices should have increased from the current N617 per liter.

While the Federal Government and Nigerian National Petroleum Company Limited (NNPCL) have maintained that fuel subsidy has ended due to downstream oil sector deregulation, fuel marketers argue that the government is implementing a form of quasi-subsidy.

In July, when petrol prices were raised to N617 per liter, crude oil was priced at approximately $82 per barrel, and the exchange rate was not as unfavorable as N950 per dollar.

Marketers contend that the government’s decision to cap petrol prices implies the reinstatement of subsidy. They call for greater transparency in addressing this issue and urge the government to openly declare if it intends to bring back fuel subsidy due to the challenges facing the country.

Chinedu Ukadike, National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), suggests that Nigeria is currently experiencing a quasi-deregulation, with both positive and negative effects resulting from fluctuating crude oil prices and the use of foreign exchange to import refined products.

Ukadike highlights the growing gap between official and parallel market exchange rates, which the government must bridge through quasi-subsidy on petrol to maintain price stability.

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As discussions continue on the quiet return of fuel subsidy, industry players stress the importance of government transparency and its impact on the Nigerian economy and consumers.

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