Nigerians Will Suffer More if Petrol Subsidy is Removed, Says Oil Marketers

The Independent Petroleum Marketers Association of Nigeria (IPMAN) have alerted their fellow citizens to brace up for harder times once the Federal Government eventually commences the removal of subsidy on Premium Motor Spirit (PMS), popularly known as petrol.

This warning came as Nigerians, especially vehicle owners and those who often visit filling stations to purchase petrol face difficulties in getting the commodity.

While the commodity is scarce in some parts of the country, the cost continues to rise in many states as Nigerians keep complaining over long queues and skyrocketing prices.

Petrol users have continued to lament the scarcity and hike in price and blamed the Federal Government for their woes.

While the official price of petrol is pegged at N185, filling stations have been selling at higher prices even most buyers have to tip fuel attendants before purchasing the commodity.

Some buy between N200 and N450 across the country after spending hours at filling stations queuing to get the commodity.

Investors King had reported that the Federal Government was contemplating removing subsidy on petrol gradually even as the Minister of Finance, Budget and National Planning, Zainab Ahmed, had hinted that allocation for subsidy in the nation’s subsidy would cease in June this year.

Investors King recalls that the administration of President Muhammadu Buhari had promised to resuscitate the nation’s collapsed refinery but a few months to the end of his eight years in office, none of the country’s refineries is yet to pick up.

Nigerian oil marketers have expressed fear that Nigerians may buy petrol at higher rates if the subsidy is removed without concrete measures put in place by the Federal Government before its withdrawal.

According to IPMAN Secretary, Abuja-Suleja, Mohammed Shuaibu, a litre of petrol may be sold at the rate of N800 or even higher if petrol is subsidized and no painstaking measures are put in place beforehand.

Shuaibu said the situation would bring untold hardship on Nigerians, adding that it would not be realistic if the nation withdraws subsidy on a commodity is barely available.

While exonerating IPMAN from the problem of scarcity of fuel, the oil marketer asked the Federal Government to explain to Nigerians how the fuel supply crisis came to be.

He told the federal government to desist from blaming oil marketers for the unwholesome development in the oil sector, warning that a subsidy removal without appropriate measures that would ameliorate the harsh effects would make citizens suffer more.

While stressing that the oil market is not properly situated for healthy competition, Shuaibu stated that once the Dangote Refinery, a privately owned company kicks off, Nigerians would be exploited through it.

Revealing that the pipelines of the refinery were not even designed to run in any Nigerian state, he disclosed that the pipelines have been structured to run in neighbouring countries except for the one in the Lekki area of Lagos State.

For him, the absence of competition in the oil sector for oil refinery would give Dangote the opportunity to be the only supplier that would be calling the shot in the industry and that would not fetch Nigerians any good.

Shuaibu said the exploitation may not end until other private persons build refineries in the country and there is competition.