In a recent development, there was a renewed clash between the Nigerian National Petroleum Company Limited (NNPCL) and fuel marketers, represented by the Independent Petroleum Marketers Association of Nigeria, over the removal of petrol subsidy. During a live television program on Channels TV, Bismarck Rewane, the Chief Executive Officer of Financial Derivatives Company, clarified that the subsidy on fuel had not been completely removed but rather reduced.
Contrary to this, oil marketers informed Punch on Tuesday that the subsidy on petrol was on the rise due to the depreciation of the naira against the United States dollar and the increasing cost of crude oil. They asserted that in a free market, Premium Motor Spirit (PMS) should be priced at N1,200 per litre. Currently, petrol, which is exclusively imported by the NNPCL, is being sold for prices ranging from N617 to N660 per litre, depending on the location of purchase in Nigeria.
However, the Chief Corporate Communications Officer of the NNPCL, Olufemi Soneye, dismissed the assertions of economists and marketers as mere assumptions, maintaining that the Federal Government had genuinely removed the subsidy on petrol.
When confronted about the alleged subsidy by industry players and experts, Soneye stated, “We prioritize our time on substantive matters rather than responding to assumptions. At NNPC Ltd, we prioritize national development through energy security and sustainable growth. We reiterate that the Nigerian government does not pay a subsidy on fuel; we recover full costs from our imported products.