Amid galloping inflation and searing cash crunch that have further impoverished them, Nigerians have been told to prepare themselves for the total removal of subsidy on petrol by the federal government.
Stakeholders said the complete de-regulation of the downstream sector of the oil and gas industry will see the price of petrol jump to N750 at filling stations.
The stakeholders made the disclosure during an online workshop titled; “Deregulation of the Nigerian Downstream Sector: The Day After.”
Joined by economic policy analysts and government agencies, the downstream players also provided a list of strategies and actions that should be taken to ensure the long-term elimination of the gasoline subsidy.
It was also revealed that Nigeria was having trouble finding buyers for its crude oil due to strikes in the French refining industry and seasonal maintenance at plants throughout Europe, which reduced the producer’s sales.
Representatives of the ARDA, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Major Oil Marketers Association of Nigeria (MOMAN), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Independent Petroleum Marketers Association of Nigeria (IPMAN) attended the workshop.
Others included PricewaterhouseCoopers (PwC), CITAC Africa, Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), Federal Competition and Consumer Protection Commission (FCCPC), and NNPC Retail Limited (NRL).
The revelation comes just as the President Muhammadu Buhari regime gears towards the removal of fuel subsidy. The regime had on several occasions attempted to totally remove subsidy, a move that has been rejected by the Nigerian Labour Congress.
Buhari had in 2022 said fuel subsidy will be phased out in 2023.