Nigeria’s downstream petroleum industry is facing uncertainty as the Federal Government may stop subsidizing petrol due to rising import bills.
Industry operators predict a possible pump price increase to around N1,000 per litre or higher, with landing costs estimated at N1,205.52 per litre, excluding delivery costs.
The current transactional analysis puts the estimated official pump cost at N1,405 per litre.
NNPCL is struggling to sustain fuel importation due to rising costs and may not be able to meet the nation’s needs.
The company has already utilized the 2023 final dividends due to the federation (N2.1 trillion) to pay for petrol subsidy and suspended payment of 2024 interim dividends.
NNPC’s cumulative petrol subsidy bill from August 2023 to December 2024 is estimated at N6.884 trillion.
Oil marketers are willing to import petrol if given similar opportunities as NNPCL and adequate support.
The Independent Marketers Association of Nigeria (IPMAN) calls for a benchmark to recover investment and encourages Dangote Refinery to increase domestic supply.
Transporters lament fuel scarcity’s impact on operations, citing increased costs and levies.
Motorists express frustration at persistent scarcity and long queues.
Dangote Refinery has commenced petrol refining, promising increased domestic supply.
Experts advocate for cooperation between the government and local refineries to process crude oil for domestic use.
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