Petrol might sell up to N800/litre when subsidy is removed – marketers.

Oil marketers maintained that Petrol might hit up to N800 per litre when subsidy is removed.

Last year, Minister of Finance, Budget and National Planning, Zainab Ahmed disclosed that the Federal Government would stop the payment of fuel subsidy by the end of June 2023.

While stressing the readiness of the FG to bring an end to subsidy regime in June, the minister recently called for the gradual withdrawal of subsidy on PMS.

Although oil marketers are on the same page with the government on this decision, they have advised Nigerians to be ready to buy petrol at over N800 per litre.

The government has also been advised to put all the necessary measures and infrastructure in place before implementing the decision to ensure a less stressful subsidy removal regime.

According to Mohammed Shuaibu, the Secretary of the Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja (IPMAN), the fuel crisis in the country would worsen further if the government removes subsidy on petrol without putting appropriate measures in place.

He added that the current fuel supply crisis in Nigeria was not caused by marketers.

He said, “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).

“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.

“This is because the product will be scarce, even from the government cycle. So the government should tell Nigerians the truth about this fuel supply crisis. It is not a problem caused by marketers.”

He said marketers are ready to sell anytime they have the product, but the law of demand and supply is the main reason the price of the commodity is currently high.

“As it is today, you have black marketers everywhere selling with jerrycans and you will ask, where are the security agencies and the regulators?

“By tomorrow they will claim that it is the fault of the marketers. How? We are businessmen and every businessman wants to make a profit. You know the law of supply and demand. When the product is scarce, prices will rise, and vice versa,” he said.

Shaibu further explained that the Nigeria oil sector was not structured for adequate competition. According to him, this could pose challenges when subsidy is eventually removed.

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