The Nigerian National Petroleum Company Limited and fuel marketers on Tuesday, affiliated with the Independent Petroleum Marketers Association of Nigeria battled again over the elimination of petrol subsidies.
This occurred against the backdrop of the naira’s decline versus the US dollar on both the official Investors & Exporters Window and the parallel market.
On Tuesday, the local currency closed at 998/dollar on the legal market, while it traded at 1,225/dollar on the underground market.
Because of the dropping naira, economists and oil marketers claimed that PMS subsidies were increasing recently, but the NNPC promptly refuted these claims, declaring that it was recovering its whole cost on the importation of Premium Motor Spirit, also known as petrol.
Bismarck Rewane, Chief Executive Officer of Financial Derivatives Company, indicated during a live television broadcast on ChannelsTV on Sunday that the fuel subsidy was reduced rather than withdrawn.
Similarly, oil marketers informed our correspondent on Tuesday that petrol subsidies were increasing due to the naira’s depreciation against the US dollar and the rising cost of crude oil, emphasizing that in a free market, PMS should sell for N1,200/litre.
Petrol, which is only imported into Nigeria by the NNPCL, is presently priced between N617/litre and N660/litre, depending on where you buy it in Nigeria.
Punch
