The Independent Petroleum Marketers Association of Nigeria (IPMAN), which represents the petroleum industry, has alerted Nigerians about the impending increase in petrol prices due to a rise in the price of petrol globally.
The information was disclosed in a statement on Monday by Mohammed Shuaibu, the Secretary of IPMAN, Abuja-Suleja. This was in response to information that the Major Energies Marketers Association of Nigeria (MEMAN) had given the previous Wednesday, which said that the landing cost of petrol was N1,117 per litre as of the previous day.
The association revealed that it still pays billions of naira in subsidies each month, despite the federal government’s assertion that it had eliminated the fuel subsidy. It issued a warning that monthly gasoline subsidy spending would exceed N700 billion.
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Shuaibu cautioned Nigerians to get ready for yet another increase in petrol prices while confirming MEMAN’s findings. He pointed out that there’s a chance the Nigerian government and the Nigerian National Petroleum Company Limited (NNPCL) are lying about how much money the nation spends on fuel subsidies.
In his words, “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.
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“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.
Recall that on the day of his inauguration, Bola Tinubu declared the elimination of gasoline subsidies. Nonetheless, it’s thought that the subsidy is being covertly funded by the federal government.
Meanwhile, Wale Edun, the Coordinating Minister of the Economy and Minister of Finance, finally acknowledged last month that the government was covertly funding fuel subsidies after making several denials.
In a draft report of the Accelerated Stabilisation and Advancement Plan (ASAP) that was sent to Tinubu in June, Edun acknowledged the payment of the subsidy. By the end of 2024, he predicted, the gasoline subsidy would have increased to N5.4 trillion.
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