The ongoing debate over petrol subsidy in Nigeria escalated on Tuesday as the Nigerian National Petroleum Company Limited (NNPCL) clashed with fuel marketers represented by the Independent Petroleum Marketers Association of Nigeria. The disagreement comes amid the depreciation of the naira against the US dollar, with implications for the cost of importing Premium Motor Spirit (PMS), commonly known as petrol.
While economists and oil marketers argue that PMS subsidy is on the rise due to the falling naira rate, the NNPC insists it is recovering its full importation cost. The Chief Executive Officer of the Financial Derivatives Company, Bismarck Rewane, stated that although the subsidy wasn’t removed, it was reduced.
Oil marketers countered, suggesting that given the current economic conditions, PMS should be sold for N1,200/litre in a free market. The existing petrol prices range from N617 to N660 per litre, varying by location in Nigeria. The situation raises concerns about the future of petrol pricing and the broader economic implications. ⛽🇳🇬 #PetrolSubsidy #NNPC #FuelMarketers #NigeriaEconomy