Nigerians may buy fuel N750 per litre following the announcement of subsidy removal.
Daily Report Nigeria reports that President Bola Tinubu announced the removal of fuel subsidy during his inaugural address on Monday.
According to Tinubu, the era of fuel subsidy ended with the administration of his predecessor, Muhammadu Buhari, stressing that the 2023 budget has no provision for subsidy.
“The fuel subsidy is gone,” Tinubu declared on Monday after he was sworn in as Nigeria’s 16th President.
The former Lagos governor said his government will rather channel funds into the development of infrastructure and other areas to strengthen the economy while stressing on the possibilities of a “unified exchange rate” under his administration.
Prior to Tinubu’s announcement, stakeholders in the downstream sector of the Nigerian oil and gas industry warned Nigerians to be ready to pay as much as N750 per litre of petrol.
The warning formed the highpoint of the stakeholders’ interventions during an online workshop, with the theme, “Deregulation of the Nigerian Downstream Sector: The Day After.”
The workshop was organised by industry stakeholders, in collaboration with the African Refiners and Distributors Association (ARDA).
The downstream players, in conjunction with economic policy analysts and relevant government agencies, also outlined strategies and measures that should be deployed to ensure sustainable removal of petrol subsidy.
Speaking at the session, National President of IPMAN, Mr. Chinedu Okoronkwo, who was represented by IPMAN’s National Operations Controller, Mr. Mike Osatuyi, revealed that the marketers were in full support of the government’s plan to embark on full deregulation of the downstream sector.
Okoronkwo warned Nigerians to prepare to pay up to N750 for every litre of petrol after the full implementation of the subsidy removal.
He however, pointed out that the projected pump price was likely to drop to around N500 if the government encouraged the Central Bank of Nigeria (CBN) to provide foreign exchange for marketers at the official rate.
Fuel Subsidy, Security, and Tinubu’s Plans for Nigeria
Okoronkwo also 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.
Participants at the workshop included representatives of the 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 goodwill message, Chief Executive Officer, NMDPRA, Mr. Farouk Ahmed, told industry players that the authority would allow a free market-pricing regime to prevail in the petroleum marketing business in the country once the sector was fully deregulated.
National President of the Nigerian Association of Road Transport Owners (NARTO), Lawal Yusuf Othman, stated that the full deregulation of the downstream sector and complete removal of petrol subsidy would introduce a mix of opportunities and challenges into the operating environment.
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