The Independent Petroleum Marketers Association of Nigeria (IPMAN) says the landing cost per litre of Premium Motor Spirit (PMS) known as petrol has made it impossible for petrol marketers to import the essential commodity just as being done by the Nigerian National Petroleum Company (NNPC) Limited.

“Right now, the landing cost of PMS is over ₦1,200, without the margin of the marketers, transportation and other logistics,” IPMAN National Operations Controller, Zarama Mustapha, said on Channels Television’s Sunrise Daily programme on Thursday.

“NNPC sells to marketers at ₦565 or so. That means there is a subsidy of almost ₦600 to ₦700 as of now.

“Whether they (government officials) say there is subsidy or there is not subsidy, the fact on the ground clearly states that there is something they are under-recovering.”

The return of petrol subsidy has been one of the very clear demands of #EndBadGovernance demonstrators who took to the streets last week to protest hunger and food inflation in Nigeria.

But during a nationwide broadcast on Sunday, President Bola Tinubu said he “took the painful yet necessary decision to remove fuel subsidies and abolish multiple foreign exchange systems which had constituted a noose around the economic jugular of our Nation and impeded our economic development and progress”.

The IPMAN official said the demands of the young protesters were legitimate but he doubted if the government could afford to such.

“Their demands are cogent, and in consistent with the realities on the ground, looking at the economic situation of the country. They have every right to go and demand that. But the other side of it is that government can do what it can be able to afford.

“If you say we should revert to ₦200 or ₦250, can the government afford that much of a burden? The government has found itself in a very difficult situation.

“There is a need for us to understand and see how best we can be patient enough and get out of this situation, the situation is very complex; not the way the general populace looks at it, government is in a very tight corner right now,” Mustapha said.

Nigeria, Africa’s most populous nation, faces energy challenges, with all its state-owned refineries non-operational. The country is heavily reliant on imported refined petroleum products, with the state-run NNPC being the major importer of the essential commodities.

Fuel queues are commonplace in the country. Prices of petrol tripled since the removal of subsidy in May 2023, from around ₦200/litre to about ₦700/litre, compounding the woes of the citizens who power their vehicles, and generating sets with petrol, no thanks to decades-long epileptic electricity supply.

The government simultaneously unified forex windows, with the value of the naira nosediving terribly from $1/₦700 to over $1/₦1600 at the parallel market. Prices of food and basic commodities immediately climbed through the roof as Nigerians battled attendant inflation.

The IPMAN official blamed policy inconsistency for the frequent petrol queues in the country, saying about half of independent marketers are almost out of business because of the forex volatility.

He said petrol marketers spend more than three times the amount they used to purchase one tanker pre-subsidy removal.

Mustapha said, “Looking at the need to be in business in the deregulation era, more than 50 or 60% of our members are almost out of business because of the capital involved. Once you cannot get the capital involved, you cannot sustain the business.

“For most of our members, what they used to buy one truck, they need about five or six times that value of capital to buy one truck today. Once you cannot get the capital involved, you cannot sustain the business.”

On the directive by the President that the NNPCL sell crude to Dangote Refinery and modular refineries in naira, the IPMAN official said, “It’s just the currency but whatever they are going to sell in naira is going to be calculated based on the FX rate.

“The point is that it will reduce the demand on the pressure on the naira. Naira will be chasing the dollar, obviously. So, the volume of demand of dollars is going to drastically reduce which will give some kind of value and appreciation to our currency.”

Source: https://www.channelstv.com/2024/08/08/why-oil-marketers-cant-import-petrol-like-nnpcl-ipman/

Nigeria is in a deep economic mess!

We should develop alternative energy source like CNG to drive our vehicles so as to reduce our overdependence on PMS. After three years, stop paying a kobo on PMS subsidy, even if it sells 5k per litre.

At some point, everyone was using kerosene in this country. Today, we are using cooking gas. Now, kerosene is very expensive and nobody cares because the vast majority of us use gas.

So subsidy is back after all.

Why the braggadocio of subsidy is gone?

Who knows if the CBN is still defending the naira.

You guys are shameless, FG uses 20trillion on petroleum importations and we have refineries that can be revatalised and won't even spend up to 10trillion. No they wouldn't do that, they would never make the refineries work. Dishing out useless numbers as if Nigerian's are there to calculate their BS. Bunch of liars and scammers. Awon oniyeye.

Are you trying to say whether they sell crude to Dangote in naira or dollar it changes nothing concerning the price of fuel lols.

If truly subsidy is back...why fuel still dey cost like dis naaa eehh Rice kimona abii Declan Rice.

Tinubu would not finish this first tenure peacefully.
Once petrol sells for 2k a litre then ...

Xxxxtentacion2:
Tinubu would not finish this first tenure peacefully.
Once petrol sells for 2k a litre then ...

.

Anything that makes fuel gets to #1,200 per litre, that might lead to unannounced or unexpected protest and na that kind protest go make politicians run comot from Abuja.

I still dey ask till date, why are they frustrating Dangote's refinery?

Xxxxtentacion2:
Tinubu would not finish this first tenure peacefully.
Once petrol sells for 2k a litre then ...

Na your own you talk.

For this Nigeria, na only me and Tinubu dey ok. The rest of una no well.

LibertyRep:
So subsidy is back after all.

Why the braggadocio of subsidy is gone?

Who knows if the CBN is still defending the naira.

Ahh if they're defending the naira and the rate is this high then we're in a deeper mess than we thought

Nigerians should just brace for hardship. I really don't see any respite in the nearest future. Prices of goods & services are still on the increase.

I'm sure Tinubu knows this. He will just try to sweet-talk Nigerians that there is hope in the horizon, until his tenure is over.

This is because energy is a fundamental bedrock of any economy
Energy cost affects all other costs in the economy and has serious effect on cost of doing business, profitability and cost of living.
The moment energy cost is high, the cost of living will be high and so will poverty rise.
This fundamental concept is what IMF and neo-colonialist institutions deliberately overlook in their conscious decision to keep most third world economies lagging in terms of growth and development.
Unfortunately, most leaders of such countries are too obssessed with trying to appear progressive and pro-Western to agree otherwise.
The result is usually catastrophic for the people led by these shallow-minded and cosmetic leaders.

mrvitalis:
have been shouting it here since last year now it's obvious

If landing cost is ₦1200 which means petrol should retail for ₦1450 minimum

Solution is simply but Tinubu is too unpopular for the change required

dam the consequences and remove subsidy and tax each litre ₦200 extra

This would make petrol ₦1700 Benin, togo Cameroon, Chad, niger even Ghana all buy at that price.. They are not dead we wont die too
Yes wait
This would save us over 7 trillion per year

Increase minimum wage to ₦250 k

With 2 trillion naira you can make federal Universities free for life ( he would be remembered for that)

And what happens when cost of making federal universities free balloons to 5trillion?

Kukutente23:

And what happens when cost of making federal universities free balloons to 5trillion?

My plan is simple you don't give the 2 trillion no

You invest it like Norway... Investing it into SMP500 yields minimum of 10% yearly

You get 125 million dollars yearly

You reinvestment 40% to cover inflation

That's leaves you with 75 million dollars thats 120 billion naira

Say there are 40 federal University
With average of 20,000 students paying 150k
That's 3 billion per school 40 schools is 120 billion

Next year you can invest another 2 trillion to cover the infrastructure improvements of the schools... Each school get 3 billion to improve infrastructure

In 6 years you have covered university, polytechnics and collage of educations

And is free from that responsibilities

It's smart thinking

Hezzyluv:
Anything that makes fuels to get to #1,200 per litre, that might lead to unannounced or unexpected protest and na that kind protest go make politicians run comot from Abuja.

I still dey ask till date, why are they frustrating Dangote's refinery?

dangote wants to buy cheap crude oil from Nigeria and sell refined fuel for us using international price.

mrvitalis:
have been shouting it here since last year now it's obvious

If landing cost is ₦1200 which means petrol should retail for ₦1450 minimum

Solution is simply but Tinubu is too unpopular for the change required

dam the consequences and remove subsidy and tax each litre ₦200 extra

This would make petrol ₦1700 Benin, togo Cameroon, Chad, niger even Ghana all buy at that price.. They are not dead we wont die too
Yes wait
This would save us over 7 trillion per year

Increase minimum wage to ₦250 k

With 2 trillion naira you can make federal Universities free for life ( he would be remembered for that)

Your idea is okay but I’m not in support of increasing minimum wage to 250k.Not everybody works with government.We need to consider the unemployed too.Look at the protest, the larger percentage of those that protested are unemployed.Instead the government can subsidize education, electricity,support our farmers,revive moribund industries that abounds in our industrial estates, secure the farms too so that our farmers can go to farm.

Why can't we at least have one working refinerie in Nigeria,

Why


Why


Why oooooooooo why

Why Nigeria am asking

What is stopping the government from supplying subsidised crude to local refineries in naira?

Tjra:

Na your own you talk.

For this Nigeria, na only me and Tinubu dey ok. The rest of una no well.

LibertyRep:
So subsidy is back after all. Why the braggadocio of subsidy is gone? Who knows if the CBN is still defending the naira.

That is very much possible.

Landing cost na Zero naira

Hezzyluv:
Anything that makes fuels to get to #1,200 per litre, that might lead to unannounced or unexpected protest and na that kind protest go make politicians run comot from Abuja.

I still dey ask till date, why are they frustrating Dangote's refinery?

Agbado himself wants dangote to sell cheap fuel without goverment covering the gap.
Tinubu is on a hot seat right now, his economic policies have backfired

E build lagos, divided the Atlantic ocean, but e reach time to build Nigeria, cement finish

Landing cost for petroleum wey God gave us for free brekete..
May God punish and thonder from Iraq strike all our leaders wey say we common Nigeria will not enjoy the fruit of our natural resources..

Subsidy is gone truly. Nigeria graduates are truly illiterate due to politics and tribalism

Hmmm!

Make Dangote try harder!

SmartPolician:


Source: https://www.channelstv.com/2024/08/08/why-oil-marketers-cant-import-petrol-like-nnpcl-ipman/

The government can shoulder the difference if they decide to sell at 250, because are they not stealing as usual if the government can shoulder the stealing why can't they do that for the people of Nigeria.