Oil marketers have issued a call to President Bola Tinubu, urging a measured approach in the removal of subsidy on Premium Motor Spirit, commonly referred to as petrol. The move comes in response to importers facing difficulties in accessing United States dollars and the resulting impact on businesses.
Despite these concerns, President Tinubu has dismissed the possibility of a fuel price hike or a reversal of fuel subsidy. In contrast, petroleum product marketers have advised the president to draw insights from Kenya, where the reintroduction of subsidy on petrol was deemed necessary to alleviate the adverse effects of its removal on the populace.
Mohammed Shuaibu, the Secretary of the Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja, highlighted the importance of government responsiveness to citizens’ needs. He emphasized that Nigeria’s dependence on imports and the unfavorable exchange rate contribute significantly to the cost of petroleum products. Shuaibu urged urgent reconsideration of the subsidy removal to ease current economic pressures.
Shuaibu also expressed concerns over the anticipated rise in fuel costs due to the escalating exchange rate. He warned that without swift intervention, oil marketers might align with labor unions in protest against the removal of subsidy.
Chinedu Ukadike, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, echoed the sentiment that outright subsidy removal could lead to severe hardships. Ukadike emphasized the necessity of introducing palliatives and support measures before implementing such a change.
Ukadike further explained that the price of imported commodities, including petrol, is closely tied to fluctuations in the exchange rate. He stressed that a weaker naira against the dollar and the supply-demand dynamics of foreign exchange influence the cost of various goods, not just petroleum products.
