Oil marketers have challenged the Federal Government’s stance, asserting that the current pump price of Premium Motor Spirit (PMS), commonly known as petrol, should not be less than N800 per litre if there is no subsidy on the commodity.
PMS currently sells for between N580/litre and N617/litre, depending on the location of purchase, as the Nigerian National Petroleum Company Limited (NNPCL) has denied the reintroduction of PMS subsidy.
The Group Chief Executive Officer of NNPCL, Mele Kyari, had stated that there was no subsidy on petrol and attributed the queues at petrol stations to distribution challenges rather than a lack of supply.
However, oil marketers insist that subsidy on PMS has returned, highlighting the landing cost of petrol at N720/litre as of last week.
They argue that the government’s removal of subsidy without thorough consideration has led to the reimplementation of the subsidy, with Nigerians paying similar prices for petrol despite a significant increase in the exchange rate.
“I don’t know why the government keeps peddling lies. When they removed the PMS subsidy, a dollar was about N700 and they made us believe that the removal of subsidy would make the supply of products play according to the dictates of demand and supply, looking at forex as the benchmark.
“Now, this is just simple arithmetic, if you removed the subsidy when a dollar was about N700 and today the dollar is more than N1,000, and you are still supplying and giving products at almost the same rate, what is the magic? They are subsidising products as we speak.
“They are spending billions of naira to subsidise products, and because they know that this country may go on fire if Nigerians buy products at about N1, 000/litre, they keep twisting facts. Why can’t they come out and tell the world the truth?” the National Secretary, Independent Petroleum Marketers Association of Nigeria, Chief John Kekeocha, stated.
Kekeocha, stated that in the near future, there may be a scarcity of petrol in many areas, particularly those without major operators with tank farms, as independent marketers control approximately 80 percent of filling stations across the country.
Kekeocha pointed out that the high cost of diesel and the inability to import due to forex issues have hindered the operations of independent marketers, making it difficult for them to compete with tank farm owners selling at around N617/litre.
The cost of landing PMS currently exceeds N700/litre, making it financially challenging for many independent marketers.
To address the situation, Kekeocha emphasized the need for the refineries to work, producing petrol locally to reduce pressure on importation and lower costs.
He also argued that the exchange rate issue must be resolved, as this would influence petrol prices in the country.