Petrol May Hit N800 Per Litre – Oil Marketers Give Reasons

January 23, 2023
Breaking: NNPC Increases Fuel Price, Filling Stations Now Selling At N500

The Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Abuja-Suleja, Mohammed Shuaibu, has disclosed that the cost of Premium Motor Spirit (PMS) could rise to N800/litre even as petrol scarcity persists.

According to Shuaibu, the removal of the fuel subsidy will cause the price of PMS, also known as petrol, to be as high as that of Diesel already selling between N800 and N900/litre.

Join our WhatsApp Channel

Prime Business Africa had reported that Federal Government plans to remove fuel subsidy – a controversial payment made to oil marketers to ensure pump prices at filling stations remain at government-controlled level –  by June 2023.

Shuaibu said without carefully considering and implementing certain measures, Nigerians will likely suffer more from removal of subsidy as fuel scarcity still subsists. 

“If the government fails to take the appropriate measures, and they say they want to remove fuel subsidy, the situation will be worse than this; the masses will suffer. How can you remove subsidy and you don’t have this product (petrol)?,” Shuaibu told Punch on Monday. 

The oil marketer stated further: “If the government removes subsidy, where is the product? If you are removing subsidy, maybe by that time, the way diesel is sold at between N800 – N900/litre, we could be buying petrol at N800/litre, if not more than that.  

“This is because the product will be scarce, even from the government cycle. So the government should tell Nigerians the truth about this fuel supply crisis. It is not a problem caused by marketers.” 

He also absolved oil marketers of the blame for petrol scarcity , stating that the retailers are not behind the price of petrol rising above the government-agreed price of N179 per litre. 

Shuaibu cited market forces as reason for the hike in price. “By tomorrow, they will claim that it is the fault of the marketers. How? We are businessmen and every businessman wants to make profit. You know the law of supply and demand. When the product is scarce, prices will rise, and vice versa.”

+ posts

Latest from Business

Market Analysis: Nigeria’s Q2 Growth Numbers In View

Sector details from today's GDP, especially the balance between services resilience and oil price variability, could shape positioning for the meeting, Daniel Wesonga, Pepperstone'sSenior Sales Manager, said in an exchange with Prime Business Africa Friday morning.
Recapitalisation: UBA Extends Deadline For Rights Issue

Recapitalisation: UBA Extends Deadline For Rights Issue

The United Bank for Africa (UBA) has extended the closing date for its rights issue by two weeks. The rights issue, which was originally scheduled to close on 5 September 2025, has been shifted to 19 September 2025.Join our WhatsApp Channel This was contained in
How Strong Competitive Market Will Stabilise Fuel Price In Nigeria
Previous Story

Top Five Nigerian Oil Companies By Revenue Market Share

CBN Releases Another Around Of $10,000 FX To Each BDC, Mandates Them To Sell At N1,117/$1
Next Story

Naira Faces Biggest Devaluation, Loses To Dollar, Others

Don't Miss

Mele Kyari

NNPCL Woos South Korean Investors To Gas Projects In Nigeria

In a move to harness Nigeria's abundant gas resources for

Love all, serve all: Diverse crowd of beast benefit from weekly wet services in malakal

JUBA, South Sudan, 3rd March 2022 -/African Media Agency(AMA)/-On Saturday