The Independent Petroleum Marketers Association of Nigeria (IPMAN) has stated that Nigeria’s fuel subsidy expenditure may exceed N700 billion monthly.
Reacting to the data released last week Wednesday by the Major Energies Marketers Association of Nigeria, which showed that the landing cost of petrol as of the preceding day was N1,117/litre, the Secretary of IPMAN, Abuja-Suleja, Mohammed Shuaibu, expressed concerns about the potential dishonesty of the Nigerian National Petroleum Company Limited (NNPCL) and the Nigerian government regarding Nigeria’s fuel subsidy expenditure.
He warned Nigerians of an impending hike in fuel prices.
“Petrol price is determined by the forces of demand and supply in the international market. When there is a global price increase, we should experience it in Nigeria.
“Therefore, the N1,117/litre is not just based on our foreign exchange rate, but also the global PMS cost. The sole importer of this product is NNPC and the company is not telling us the truth.
“But data sourced by our counterparts, the major marketers, showed clearly that the landing cost of petrol is above N1,100/litre. This means that the monthly subsidy has crossed N700bn.
“That also means we should be prepared so that any time the price of petrol jumps, we should not be surprised because they have already told us,” Shuaibu stated.
Despite Shuaibu’s claims, Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), insists that fuel subsidies have been removed.
