Petroleum marketers in Nigeria, have said the Nigerian government has completely removed the subsidy on Premium Motor Spirit (petrol), hence the recent price increase of the product by the Nigerian National Petroleum Company Limited (NNPCL).
Management of NNPCL had on Wednesday increased the price of the PMS to N1,030 and N998 per litre in Abuja, Federal Capital Territory, and Lagos State respectively.
The spokesperson of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, who dropped the hint was reacting to the latest fuel price hike across NNPC outlets.
Many NNPCL retail outlets on Wednesday adjusted their fuel pump price from N897 per liter to N1,030 in Abuja. This comes weeks after NNPCL increased its fuel pump price to N897 per liter from N617.
Reacting, Ukadike said, it is a price template that shows that the total deregulation of the oil and gas sector and the implementation of the Petroleum Industry Act have taken off.
The Marketers’ spokesperson said: “With this, I don’t think there is anything like subsidy on petroleum products again. NNPCL is now selling as they are buying from Dangote Refinery. NNPCL is no longer a middleman for oil marketers. Marketers are to buy petrol products from Dangote Refinery. It has become a willing buyer, selling relationship. We are embracing the new NNPCL price template.”
He, however, added that NNPCL and Dangote Refinery are yet to release their petrol ex-depot prices, which will determine whether marketers will sell the product.
“Although they have not released their ex-depot prices, we are waiting for NNPCL’s ex-depot prices. Once the ex-depot prices of NNPCL and that of Dangote Refinery are released, we will now choose where to buy our petroleum products and stock our filling stations,” he said.
This comes with a speculation that Dangote Refinery had increased its petrol price to N977 per liter from N898. NNPCL had earlier revealed that it bought Dangote petrol at N898 per liter.
However, a spokesperson for Dangote Group, Anthony Chiejina, disagreed with NNPCL, but the company did not reveal its petrol price.
The development has been creating controversy in the oil and gas sector.
