Marketers anticipate fuel subsidy to notch above N700b, despite denial by Abuja
By Jeph Ajobaju, Chief Copy Editor
Marketers expect fuel subsidy to rise above N700 billion per month any time from now, despite Abuja’s denial of continuation of the scheme President Bola Tinubu pronounced ended at his inauguration on 29 May 2023.
Independent Petroleum Marketers Association of Nigeria (IPMAN) Abuja-Suleja Secretary, Mohammed Shuaibu, made the disclosure in reaction to data released by the Major Energies Marketers Association of Nigeria (MEMAN), noting the landing cost of petrol is now around N1,117 per litre.
Shuaibu said the Nigerian National Petroleum Company Limited (NNPC) and the government are not telling the truth about fuel subsidy expenditure, and warned the public to prepare for higher pump prices.
“Petrol price is determined by the forces of demand and supply in the international market. When there is a global price increase, we should experience it in Nigeria,” Shuaibu reiterated in a statement.
“Therefore the N1,117/litre is not just based on our foreign exchange rate, but also the global PMS [fuel] cost. The sole importer of this product is NNPC and the company is not telling us the truth.
“But data sourced by our counterparts, the major marketers, showed clearly that the landing cost of petrol is above N1,100/litre. This means that the monthly subsidy has crossed N700bn.
“That also means we should be prepared so that any time the price of petrol jumps, we should not be surprised because they have already told us.”
Petroleum Resources Minister of State (Oil) Heineken Lokpobiri has reiterated on several occasions that fuel subsidy has been removed and will not be restored.
Fuel at the pump currently sells at between N617 and N750 per litre, depending on the location, but dealers have stressed the ex-depot price charged by the NNPC is N585 per litre, a difference of N532.
Figures compiled by the Petroleum Resources Ministry show 44.3 million litres were consumed daily in October 2023. Multiplied by N532 subsidy per litre, that comes down to N23.57 billion daily subsidy.
And it amounts to more than N700 billion per month, counted as 30 days.
Former Kaduna Governor Nasir El-Rufai – a member of Tinubu’s All Progressives Congress – is among those who have argued fuel subsidy is still being paid by the government despites its denial.
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