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Petrol Marketers Criticize Subsidy Removal Process As Fuel Queues Reappear

Published

1 year ago

Oct 5, 2023.

Eko Hot Blog reports that Petrol marketers have raised concerns about the process followed by President Bola Tinubu in the removal of subsidies on petrol, asserting that essential measures that should have preceded the removal were overlooked.

They argued that the nation’s refineries should have been fully operational, and issues related to foreign exchange should have been resolved before the subsidy was removed.

As fuel queues reappeared in Abuja, with several independent and indigenous major outlets closed, petrol prices also saw an increase at some open stations. The pump price at TotalEnergies, Mobil, and Conoil stations had risen from N617 per litre to N619.

During the National Executive Council meeting of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) in Abuja, the marketers questioned the Federal Government’s failure to curb illicit trading of dollars in the country.

Mr. Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), expressed support for the government’s decision to end petrol subsidies but criticized the implementation, noting that it lacked proper groundwork. He also raised concerns about the government’s push for Compressed Natural Gas (CNG) as a petrol alternative, citing the high cost of setting up CNG stations.

Mr. Benneth Korie, NOGASA President, highlighted the severe pressure on the downstream sector, with stations closing due to challenging operational conditions. Korie noted that depot owners faced difficulties securing bank loans due to high interest rates, and filling stations struggled to procure products for their retail outlets.

He urged the government to intervene urgently to prevent the industry from collapsing further, emphasizing the critical role of the oil industry in the nation’s economy.

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