Fuel Subsidy Saga Continues as NNPCL and Marketers Clash, Petrol Price Soars to N1,200/litre

The Nigerian National Petroleum Company Limited (NNPCL) and fuel marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) have once again locked horns over the contentious issue of fuel subsidy.

The ongoing debate has resulted in a significant spike in petrol prices, with some operators now pegging the cost at a staggering N1,200 per litre.

The disagreement comes amid the backdrop of the weakening Nigerian naira against the US dollar at both the official Investors & Exporters Window and the parallel market.

On Tuesday, the local currency closed at 998/dollar at the official market, while it traded at 1,225/dollar at the black market.

Economists and oil marketers have argued that the current pump price of Motor Spirit, popularly called petrol, should not be less than N800/litre without subsidy.

However, the NNPCL has denied reintroducing a subsidy on petrol.

The situation has led to a scarcity of petrol in the country, with some dealers claiming that the NNPCL is not being entirely truthful about the availability of the product. As a result, long queues at petrol stations have become a common sight, causing frustration and inconvenience for Nigerian citizens.

The Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, recently stated during a live television program that the subsidy on petrol was increasing in recent times. However, the NNPCL has countered this position, claiming that it is recovering its full cost on the importation of Motor Spirit.

This ongoing dispute between the NNPCL and fuel marketers has left many Nigerians wondering about the future of fuel prices and the potential impact on their daily lives. As the situation continues to unfold, it remains to be seen whether a resolution can be reached or if the Nigerian people will be forced to bear the brunt of the escalating petrol prices.