Oil marketers have urged President Bola Tinubu to reconsider the decision on subsidy removal for Premium Motor Spirit (petrol), given the challenges faced in obtaining U.S. dollars and the consequent strain on businesses. President Tinubu has ruled out any potential fuel price increase and maintains his stance on subsidy removal.
Taking Kenya as an example, the marketers stressed that after experiencing severe adverse effects from subsidy removal, the country reintroduced the subsidy for two months. Mohammed Shuaibu, Secretary of the Independent Petroleum Marketers Association of Nigeria, highlighted the irony of Nigeria, an oil-producing nation, relying on imports due to its non-functional refineries.
The price of petrol in Nigeria is influenced largely by the foreign exchange rate. Shuaibu indicated that unless the government takes swift action, petrol prices could soar in the coming weeks.
Various stakeholders, including the Berom Youth Moulder-Association and the Independent Petroleum Marketers Association of Nigeria, emphasized the hardships faced by the public due to increased fuel prices. They called for governmental intervention and cited the importance of a stable forex rate for affordable petrol pricing.
The Nigeria Extractive Industries Transparency Initiative (NEITI) also recommended policies to attract investment in refineries. In response to the rising costs after subsidy removal, the presidency stated that Nigeria currently offers the cheapest PMS price in West Africa. Ajuri Ngelale, Special Adviser to the President on Media and Publicity, reiterated the President’s commitment to deregulation and maintaining current petrol prices.
The Nigerian National Petroleum Corporation affirmed that there would be no increase in petrol prices.
