As the crisis in Nigeria's oil sector intensifies, it has been revealed that fuel subsidies are consuming over N700 billion monthly under President Bola Tinubu's administration.
Mohammed Shuaibu, Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abuja-Suleja, disclosed this, contradicting claims by the Federal Government and NNPC that no subsidy on petrol exists.
Shuaibu explained that the actual cost of subsidizing petrol, given its landing cost as reported by MEMAN, exceeds N700 billion monthly. He stated, "Petrol price is driven by international demand and supply forces.
When global prices rise, Nigeria should also see an increase. The N1,117 per litre cost is influenced not only by our exchange rate but also by global PMS prices.
The NNPC, as the sole importer, isn't transparent about this."
Data from major marketers shows the landing cost of petrol surpassing N1,100 per litre, indicating that the monthly subsidy exceeds N700 billion.
Shuaibu emphasized that Nigerians should not be surprised by sudden price hikes in petrol, as the groundwork has already been laid.
SaharaReporters previously noted that the landing cost for Premium Motor Spirit was pegged at N1,117 per litre, raising questions about subsidy payment accountability.
Recently, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, held discussions with officials from Dangote refinery, Nigerian National Petroleum Company Limited, Nigerian Upstream Petroleum Regulatory Commission, and Nigerian Midstream and Downstream Petroleum Regulatory Authority in Abuja.
The meeting addressed concerns between Dangote refinery and oil sector regulators and operators, amidst hopes that Dangote's refinery operations would ease import pressures, despite ongoing disputes with oil marketers.
In addition, the House of Representatives has established an investigative committee to examine the lack of crude oil availability for domestic refineries and allegations of price hikes for profiteering purposes.
Shuaibu insisted that if the government is not subsidizing petrol, it should fully deregulate the downstream sector.
Transparency remains elusive regarding Nigeria's subsidy expenditures and the overall oil sector operations.
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