The downstream sector of the Nigerian oil and gas industry is set to undergo complete deregulation in the coming months, and industry stakeholders are warning that Nigerians should prepare for petrol prices as high as N750 per litre at filling stations.
During an online workshop, organised by industry stakeholders in collaboration with the African Refiners and Distributors Association (ARDA), participants outlined strategies and measures that should be deployed to ensure sustainable removal of petrol subsidy.
National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Chinedu Okoronkwo, warned Nigerians of the impending price hike and urged the government to channel expected savings from subsidy removal to provision of palliatives for the masses.
Although the projected pump price is likely to drop to around N500 if the government encourages the Central Bank of Nigeria (CBN) to provide foreign exchange for marketers at the official rate, the high cost of petrol will undoubtedly have a significant impact on the already struggling Nigerian economy.
Nigeria is currently struggling to find buyers for its crude oil, with strikes in the French refining sector and seasonal maintenance at plants elsewhere in Europe cutting into the Organisation of Petroleum Exporting Countries (OPEC) producer’s sales.
In light of these challenges, former Chief of Policy and Plans, Nigerian Navy, Rear Admiral Henry Babalola (rtd), called on the federal government to prosecute persons involved in oil theft for treason. Babalola expressed disappointment with the government’s poor handling of the oil theft issue, which he said was destroying the country’s revenue base.
The deregulation of the downstream sector is expected to end the wasteful petrol subsidy regime before the end of President Muhammadu Buhari’s tenure on May 29, 2023.
As Nigerians brace for the anticipated price hike, it is crucial that the government implements appropriate palliatives to alleviate the burden on the masses and ensure transparency in communication about the issue.