Oil marketers have warned that the price of petrol (Premium Motor Spirit or PMS) in Nigeria could exceed N800 per litre once the government removes the fuel subsidy. This comes amid a persistent scarcity of petrol in the country. Marketers argue that while it might be advisable to remove the subsidy, the government should be aware that petrol prices could skyrocket if it is no longer subsidized.
Currently, the Nigerian National Petroleum Corporation Limited (NNPC) is the sole importer of petrol into the country. The Finance Minister, Zainab Ahmed, had suggested a gradual withdrawal of the fuel subsidy, with the budgetary allocation for subsidy set to end in June.
Oil marketers emphasize the need for the government to put in place all necessary measures and infrastructure to ensure a smooth transition before removing the subsidy. They warn that without proper planning, petrol prices could reach N800 per litre or even higher, making it unaffordable for many Nigerians.
The Independent Petroleum Marketers Association of Nigeria has also raised concerns about the lack of competition in the downstream sector, which could pose challenges when the subsidy is eventually removed. They believe that competition among multiple suppliers would be essential to ensure fair pricing and availability of petrol.
Motorists and citizens have expressed their frustration over the scarcity and high prices of petrol, with some blaming the ruling All Progressives Congress (APC) for the situation. Long queues at filling stations and higher-than-official prices have added to the woes of Nigerians, who are already grappling with economic challenges.
Despite the outcry, the government has yet to announce a clear plan for addressing the petrol scarcity and subsidy removal, leaving many Nigerians uncertain about the future of fuel prices in the country.