Oil marketers and sector analysis indicate that the Nigerian government may spend N1.68tn on fuel subsidy from September to December this year.
PMS dealers state that petrol’s pump price should be between N890 to N900 per liter due to the falling naira and rising crude oil prices.
Fuel Subsidy Resumption
Petrol currently sells between N598 and N617 per liter, raising suspicions of government subsidy.
The government and NNPCL have not officially admitted to reintroducing fuel subsidy, despite President Bola Tinubu announcing its end on May 29.
Oil marketers argue that forex crisis and crude price hikes make it impossible for petrol to remain at N617 per liter, suggesting a quiet reintroduction of subsidies.
According to media report on Punch Newspaper, the government paid N169.4bn in subsidy in August 2023.
Chief Chinedu Ukadike, National Public Relations Officer of Independent Petroleum Marketers Association of Nigeria, asserts that the government must assist by paying subsidy due to the falling naira and high dollar exchange rates.
An unconfirmed source also told Punch that “subsidies are back” and suggests government intervention to maintain stable prices.
CSOs criticize the lack of transparency and accountability in the petroleum sector, emphasizing the need for public trust and accountability in government actions.
