The secretary of the Independent Petroleum Marketers of Nigeria (IPMAN), Mr Mohammed Shuaibu disclosed on Monday that the Nigerian Government may be paying Fuel Subsidy of N700 billion monthly.
His statement came as a reaction to data from Major Engergies Marketers of Nigeria which revealed the landing cost of Petrol in Nigeria to be N1,117 per litre.
Speaking to the MEMAN’s data, Shuaibu contended that the Nigerian National Petroleum Company Limited and the Nigerian government may not be telling the truth about the country’s fuel subsidy expenditure.
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/liter. This means that the monthly subsidy has crossed N700bn.
Mr Shuaibu also warned Nigerians to brace themselves for a sudden hike in the price of fuel.
“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.
Further analysis showed that although petrol goes for between N617 per liter and N750 per liter depending on the location, dealers said the ex-depot price of the commodity by NNPC is N585/liter.
This brings the difference between the landing cost of N1,117 and an ex-depot price of N585 to N532.
According to the Federal Ministry of Petroleum Resources, petroleum consumption figures of 44.3 million liters in October 2023, multiplied by the estimated N532 subsidy paid on each liter of petrol, give N23.57 billion as the daily subsidy spending.
The figure of the estimated fuel subsidy thereby amounts to over N700 billion in 30 days.
Recall that President Tinubu had on his inauguration announced the immediate removal of fuel Subsidy.
Also, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri on several occasions had insisted that fuel subsidies remain removed in Nigeria.
However, this position might be a lie and an attempt by the Federal government to deceive Nigerians as revealed by Mr Mohammed.
IPMAN is not the only one raising concerns about the possibility of Nigeria still paying Fuel Subsidy.
Recall that the former governor of Kaduna State, Mallam Nasir El-Rufai, had claimed that the President Bola Tinubu-led Federal government is paying more on fuel subsidies than before.
Similarly, the President of the Trade Union Congress, Festus Osifo had also hinted at the government is applying a quasi-fuel subsidy on petrol.
