Oil marketers have stated that the cost of the Premium of Motor Spirit popularly called petrol would cross N800 per litre once subsidy is removed.
Operators within the industry had repeatedly stated that the high cost of subsidy on petrol was a burden on the Nigerian National Petroleum Company Limited and was contributory to the prolonged crisis in the downstream oil sector. NNPC is the sole importer of petrol into Nigeria.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, recently suggested that the government should gradually withdraw subsidy on PMS, stressing that the budgetary allocation for subsidy would end in June.
Oil marketers however said that while it could be advisable to remove subsidy, Nigerians should know that the cost of petrol could cross N800/litre once the commodity was no longer subsidised.
They urged the Federal Government to ensure that all the necessary measures and infrastructure to ensure a less stressful subsidy removal regime were put in place before implementing the decision.
Secretary of thr Independent Petroleum Marketers Association of Nigeria, Mohammed Shuaibu said that
“If the government fails to take the appropriate measures, and they say they want to remove fuel subsidy, the situation will be worse than this, the masses will suffer. How can you remove subsidy and you don’t have this product (petrol)”.
He further said “If the government removes subsidy, where is the product? If you are removing subsidy, maybe by that time, the way diesel is sold at between N800 – N900/litre, we could be buying petrol at N800/litre, if not more than that.
The premium Motor Spirit has generated an outcry from users of the commodity, especially motorists, who have directed their anger at the ruling All Progressives Congress.
The commodity, which has an official price of N185, is being sold at higher prices by filling stations across the country.
This is in addition to the long queues of vehicles that often add to the woes of Nigerians due to the traffic they cause when they spill into main roads.
