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OPN propose subsidy removal before June ‘23

OPN propose subsidy removal before June ‘23
Photo by Erik Mclean- Ask Nigeria

Petrol is cheaper in South-west states than South-east and South-south.

The Organized Private Sector (OPS) together with fuel marketers and economists have appealed to the federal government to release the regulation of the price of petroleum products to market forces. Only retail petrol stations owned by the Nigerian National Petroleum Company (NNPC) Limited and few member marketers of the Major Oil Marketers Association of Nigeria (MOMAN) sell fuel at the rate of N165 to N170, while other retail stations belonging to member marketers of the Independent Petroleum Products Marketers Association of Nigeria (IPMAN) sell above the regulated prices – between N250 and N400 per litre.

According to research, it was discovered that petrol is more expensive in the South-east and South-south, compared to the South-west states. This is because of the high cost of getting vessels for transporting the product from the high sea to the eastern zone of Calabar and Port Harcourt. This development has caused an argument of the unsustainability of trillions of naira on petrol subsidy due to unavailability of the product in many petrol stations among petrol marketers.

Marketers opine diversion of subsidy budgets to refineries fixation.

At an interview, the Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), Mr. Clement Isong and the National President of the Petroleum Products Outlets Owners Association of Nigeria (PETROAN), Dr. Billy Grills-Harry, stated that the federal government should urgently push abolishment of subsidy regime and reallocation of the projected N6 trillion for petrol subsidy in 2023 to other significant sectors. They suggested that the subsidy budgets be diverted to fix the country’s refineries, purchase gas-fired mass transit buses to improve alternative energy and introduce subsidy to accelerate food production for reduction of food costs.

Furthermore, marketers projected the actual market price of petrol to be between N450 and N500 per litre, while appealing to the monetary authorities to ensure availability of foreign exchange to all marketers for enablement of all marketers to import petrol. Contrary to the provisions of the Petroleum Industry Act (PIA), which endorsed full deregulation of the downstream petroleum sector, the federal government, in January 2022, postponed elision of petrol subsidy to June 2023, this year.

Nigerians pay between N300 and N650 for one litre of petrol.

According to Isong, MOMAN members were having difficulties with conveying products to retail stations as there were challenges with supplying and selling petrol at the government’s price and forcing NNPC to do it. As a result, marketers who are ready to take vessels to the high seas for collection of the product from the NNPC and convey to depots in the east in Port Harcourt do it at higher costs which gets transferred to IPMAN and eventually to the customer.

Therefore, members of the Organized Private Sector of Nigeria (OPSN), economists and financial experts have appealed to the federal government to take drastic steps for official termination of the policy of subsidizing the price of petrol before June 2023. They suggested removal of the subsidy in phases and to ensure renewal of the four petrol refineries in the country. NECA boss, Oyerinde, asserted that the present situation where Nigerians pay between N300 and N650 per litre for a product that is supposed to be subsidized and sold at N165 has weakened the argument for subsidy.

Petrol subsidy is considered massive corruption.

Oyerinde affirmed that the huge amount spent on subsidy is indirectly used to subsidize inefficiency, consumption and corruption. A professor of Economics, Akpan, said that the local refineries need to start functioning before the decision of the existence of a subsidy can be made. He also regarded subsidy as perhaps massive corruption. He advised that the removal of subsidy can begin when the market price of petrol is determined and production for domestic use has begun by local refineries.


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Admin
1
13 days ago

OPN propose subsidy removal before June ‘23Petrol is cheaper in South-west states than South-east and South-south. – Express your point of view.

Member
8
13 days ago

Why do these government enjoy making life difficult for citizens? The fuel is scarce and expensive at the same time. If it’s expensive, at least let it be available for those who can afford it.

Abusi
Member
8
13 days ago

Petrol is scarce and expensive everywhere in the whole of Nigeria. It is disturbing and still there is no stable power supply. The subsidy should be removed and we should just face our fate like that.

Member
9
13 days ago

This subsidy removal has been on for long for once let t om I to fruition than continued proposal that’s of no use,as the OPR are saying the before the 6the month of the year.

Member
9
13 days ago

According to what people in government are saying,petroleum subsidy payment issue is very shady and only the wealthy gain from it but the issue now is the realness of the claim that huge amount is been paid for the subsidy which maybe false because anything can happen in Nigeria.

Member
8
13 days ago

No doubt regards Oyerinde’s affirmation that.. “the huge amount spent on subsidy is indirectly used to subsidize inefficiency, consumption and corruption”. As advised, the removal of subsidy can begin when the market price of petrol is determined and production for domestic use has begun by local refineries would be of help.

Last edited 13 days ago by Iyanu12345ogg
Member
9
13 days ago

OPN propose subsidy removal before June ‘23. So much suffering in Nigeria. Yet government don’t even care about the life of it citizens. Hard life in Nigeria. We need to vote for right candidate who have vision. We need to be obidient

Member
8
13 days ago

This is really scary, cos at this rate, I hope the prices doesn’t get any worse beyond how it is. This scarcity and hike in price has been on for over a month now. It’s frustrating and annoying. Even those who can afford to buy ot at whatever rate, it’s still not available to them

Member
8
13 days ago

It’s encouraging that the Fuel Industry Association, economists, and the organized private sector have all urged the government to stop intervening in the market price of petroleum products.

Member
8
13 days ago

I hope prices don’t become worse at this rate. Over a month has passed since this scarcity and price increase began. It’s aggravating. Even those who can afford it can’t buy it.

Member
8
13 days ago

The petroleum subsidy payment issue is said to be very shady, and only the wealthy stand to benefit from it. However, the issue at hand is the veracity of the allegation that a large sum has been paid for the subsidy, which may not be the case because anything can happen in Nigeria.

Member
8
13 days ago

It was determined that the cost of gasoline is higher in the states located in the South-East and South-South, compared to those states located in the South-West.

Member
8
13 days ago

Because of this scenario, many petrol marketers are arguing that the trillions of naira that are spent annually on gasoline subsidies are unsustainable. This is due to the fact that the product is no longer available in many gas stations.

Member
8
13 days ago

The federal government should work quickly to end all forms of government subsidies and redirect the money that will be budgeted for gasoline subsidies this year to more important industries.

Member
8
13 days ago

Before a determination can be made on the availability of a subsidy, it is necessary for the nearby refineries to get up and running.

Member
8
13 days ago

Marketers who are prepared to send vessels to acquire the cargo from the NNPC on the high seas and transport it to depots in the east

Member
8
13 days ago

In every city in Nigeria, petrol is both hard to come by and expensive. It’s frustrating that we still don’t have a reliable source of electricity. It’s time to stop getting government handouts and accept our plight as it is.

Member
8
13 days ago

Let’s finally finish this subsidy removal idea once and for all rather than continuing with pointless proposals, as the OPR claims the before the sixth month of the year.

Member
8
13 days ago

Petrol is scare and expensive people are suffering due to low supply of petrol. No enough electricity to be used also, OPN prospose to subsidy remove is better is been removal rather than suffering like this

Member
8
12 days ago

This issue of subsidy removal has been on ground for quite a while now. It will be better if the subsidy is moved and allow the market forces to decide the price of Petro.

Member
8
12 days ago

These so called cabals are feeding fat on the country, let the subsidy be remove so that the market force will determine the price.

Member
8
12 days ago

The fact that economists, the organized private sector, and the Fuel Industry Association have all asked the government to quit interfering with the market price of petroleum products is positive.

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