Petrol to cost N750 per litre as FG removes subsidy

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With the federal government’s planned removal of petrol subsidy, Nigerians are to pay as much as N750 per litre for the product.

This was disclosed by stakeholders in an online workshop held under the theme ‘Deregulation of the Nigerian downstream sector: The day after, organised by industry stakeholders, in collaboration with the African Refiners and Distributors Association (ARDA).

The workshop participants were included the representatives of ARDA, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), and Independent Petroleum Marketers Association of Nigeria (IPMAN).

Others were NNPC Retail Limited (NRL), Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), Federal Competition and Consumer Protection Commission (FCCPC), PricewaterhouseCoopers (PwC), and CITAC Africa, among others.

In his presentation, the national president of IPMAN, Mr. Chinedu Okoronkwo, said the marketers were in support of the government’s planned full deregulation of the downstream sector.

Okoronkwo who was represented by IPMAN’s national operations controller, Mr. Mike Osatuyi, said Nigerians should brace for buying petrol at N750 per litre after the subsidy removal.

However, he said the price could drop to N500 per litre if the Central Bank of Nigeria (CBN) would provide foreign exchange for marketers at the official rate.

The IPMAN president urged the government to channel expected savings from subsidy removal to provision of palliatives for the masses.

He advised the government to be alert and sensitive to resentment from Nigerians.

In his perspective, the fiscal policy partner and Africa Tax Leader at PwC, Mr. Taiwo Oyedele, said deliberate public sensitisation, industry engagement, and collaboration with civil society organisations are needed to aid public buy-in during the implementation of full deregulation by the government.

He charged the government and the regulators to identify potential pitfalls that could trigger resentment from citizens before, during, and after the removal of the petrol subsidy.

He added that in the course of implementation of the policies, the government’s interpretation of its strategy must be issues-based and not confrontational.

In his presentation, the managing director of CITAC Africa, Mr. Gary Still, explained that market liberalisation means the removal of government subsidies and price controls on petroleum products and allowing the market forces to determine the price and supply of petroleum products.

He advised the Nigerian government to completely deregulate the downstream oil sector and free the market from the existing price fixing and control to allow investments to flow into the sector.

Other industry stakeholders were unanimous in calling on the government to implement appropriate palliatives in the form of public transportation, freight of agricultural produce.

They also made a case for transparent and effective communication as well as access to foreign exchange.

They further stressed the need for operators in the industry to institutionalise professionalism in the midstream and downstream petroleum sectors ahead of the take-off of full deregulation.

With ThiDay report

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