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Petrol may sell for N800/litre when subsidy is removed – Marketers

Published

2 years ago

January 23, 2023

As the scarcity of the Premium of Motor Spirit, popularly called petrol, continued on Sunday, oil marketers have stated that the cost of the commodity would cross N800/litre once subsidy on PMS is removed.

Industry operators had repeatedly stated that the high cost of subsidy on petrol was a burden on the Nigerian National Petroleum Company Limited and was contributory to the prolonged crisis in the downstream oil sector. NNPC is the sole importer of petrol into Nigeria.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, recently suggested that the government should gradually withdraw subsidy on PMS, stressing that the budgetary allocation for subsidy would end in June.

But oil marketers told our correspondent that while it could be advisable to remove subsidy, Nigerians should know that the cost of petrol could cross N800/litre once the commodity was no longer subsidised.

They urged the Federal Government to ensure that all the necessary measures and infrastructure to ensure a less stressful subsidy removal regime were put in place before implementing the decision.

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“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),” the Secretary, Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja, Mohammed Shuaibu, stated.

He added, “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.”

Shuaibu said oil marketers were ready to sell, stressing that when marketers got products a few weeks ago, the queues disappeared.

“But as it is today, you have black marketers everywhere selling with jerrycans and you will ask, where are the security agencies and the regulators?” he asked.

The IPMAN official added, “By tomorrow they will claim that it is the fault of the marketers. How? We are businessmen and every businessman wants to make a profit. You know the law of supply and demand. When the product is scarce, prices will rise, and vice versa.”

He explained that the downstream sector was not structured for adequate competition, adding that this could also pose challenges when subsidy was eventually removed.

He said, “By the time you are removing subsidy, you should know that the market is not properly opened and there is no competition. They always tell you about Dangote Refinery. We must understand that Dangote is a privately owned company.

“The pipelines of that facility were not even designed to run in any Nigerian state, rather it was designed to run to neighbouring countries, and maybe that one in Lekki there, that is all.

“So, more or less, that refinery might still exploit us, because when there is no competition, the only supplier calls the shots. For had it been that as Dangote is producing in Lagos, another person is producing in Warri, while one refinery is pumping in Abuja, then there will be competition.”

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He continued, “We can see, for instance, the competition in the telecommunications sector today. But the government will continue to deceive us that Dangote Refinery will come on stream, when we know that it cannot really solve the problem.”

He argued that most of the pipes of the refinery were laid to neighbouring countries to supply them gas, stressing that Nigeria should not completely rely on the facility.

“They should not continue to be singing it as if it is what will solve our fuel supply problems,” the IPMAN official stated.

Motorists lambast APC

Meanwhile, the scarcity and hike in the price of Premium Motor Spirit, otherwise known as petrol, has generated an outcry from users of the commodity, especially motorists, who have directed their anger at the ruling All Progressives Congress.

The commodity, which has an official price of N185, is being sold at higher prices by filling stations across the country.

This is in addition to the long queues of vehicles that often add to the woes of Nigerians due to the traffic they cause when they spill into main roads.

According to one Instagram user, @paschal_dheyvid, who bought the commodity at N200 per litre, he had to pay N1, 000 to gain entrance into the filling station and still had to join a long queue.

The same situation was experienced by a Twitter user, @thatboyyouhate, who said, “I was at a filling station this morning and they had to take N1, 000 from me for my 25-litre keg.”

An Instagram user, @charlessoronnadimotors, said he bought the commodity at “N420 per litre here in Aboh Mbaise, Imo State.”

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Twitter user, @supapraise, lamented the long hours he spent in the queue at a Nigerian National Petroleum Corporation filling station in Port Harcourt before he could buy the commodity.

He wrote, “I spent 11hrs (5am to join an already long queue. I left at 4pm) at the NNPC filling station in PH. I bought for N189. That morning, it was N179. They paused selling and adjusted the metre to the new price of N189. Paused selling again to maintain their generator since there was no NEPA electricity.”

Expressing anger at the APC which is seeking to remain in power in 2023, one @RexAgu1 said, “N360 per litre. APC has failed the unborn kids. They have removed subsidy without letting Nigerians know.”

On his part, one @King_Olivertwit sarcastically said, “APC supporters are buying it for N50/L while others are buying it for N350 to as much as N500 per litre.”

One Pascal Nwankwo, @pascalnwankwo7, blamed the situation on the APC, adding, “…and some misguided fellows are still campaigning for the APC.”

On Instagram, one @malaro44 laid curses on those still working to ensure that the APC retained the Presidency after the end of the regime of the President, Major General Muhammadu Buhari (retd.). He said, “People voting APC, may everything about APC never depart from your household… the suffering, the hardship, the kidnapping and insecurity.”

Efforts to get the reaction of the National Publicity Secretary of the APC, Felix Morka, proved abortive as his phone number was busy and he didn’t respond to the text message sent to him by our correspondent.

Punch

Related Topics:Featured marketers petrol subsidy

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Obi lied, I blocked him from visiting IDP camp – Alia

Published

10 hours ago

April 25, 2025

Trends Admin

Obi lied, I blocked him from visiting IDP camp – Alia

Governor Hyacinth Alia of Benue State has given the major reason for blocking major opposition figure Peter Obi from visiting the IDP camp in the state.

Alia accused the Labour Party leader of violating standard protocols by failing to inform the governor ahead of his visit as courtesy demands.

Alia, in an interview with TVC on Thursday, said Obi was blocked from visiting the Benue IDP camp because his “intention” was unknown, and he violated protocols by not informing him in advance.

“A very respected Peter Obi was a governor. If you are coming into someone’s state, there are protocols. Very high personality; you are coming into someone’s state, and your party does not even know you are coming.

“I, the sitting governor, did not know you were coming. Then, you are going into where I’m protecting even the most, the IDP camp. It’s my duty to protect them. They’ve been displaced. I need to protect them even some more. I don’t know the intent you have,” Governor Alia said.

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He added, “Is it not courteous enough for me to know as a sitting governor and even to provide more security for you and prepare the minds of the IDPs that a guest is coming to visit them?”

The governor denied claims that he was unreachable when the former Anambra governor called to inform him of his visit.

“No, that’s not the right narrative. I can never politicise that. I’m the one bearing the brunt, pain and sorrows of the IDPs in my state,” Alia stated.

He added, “If he (Obi) couldn’t reach me, I have a chief of staff, I have an SSG, (and) I have a PPS.”

Last week, Alia said he could not guarantee the safety of any individual or group visiting Benue without his knowledge or clearance, barring Obi from visiting the state.

However, Obi expressed displeasure at how Governor Alia’s government allegedly politicised his planned visit to the troubled Benue.

Obi lied, I blocked him from visiting IDP camp – Alia

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Zulum meets with Cameroonian troops after deadly Boko Haram attack

Published

10 hours ago

April 25, 2025

Trends Admin

Zulum meets with Cameroonian troops after deadly Boko Haram attack

Governor of Borno State, Babagana Zulum, has commiserated with the Multinational Joint Task Force (MNJTF) following the recent Boko Haram assault in Wulgo, a border town with Cameroon.

Governor Zulum paid a visit on Thursday to Cameroonian troops under Sector 1 of the MNJTF, where he also extended sympathies to both the government and citizens of Cameroon over the devastating attack.

In Wulgo, located roughly 15 kilometres from Gamboru Ngala, the governor was welcomed by Major General Godwin Michael Mutkut, the Force Commander of the MNJTF.

“I am here to commiserate with you, and with the government and people of the Republic of Cameroon, over the recent unfortunate incident. I wish to salute your bravery and unwavering commitment to safeguarding lives and property in the region,” stated Governor Zulum.

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The governor also reaffirmed Nigeria’s commitment to supporting the MNJTF and Cameroon in their fight against terrorism and insurgency in the Lake Chad region.

“The Government of Nigeria will explore all possible avenues to complement the efforts of the Multinational Joint Task Force and the government of Cameroon to bring lasting stability to the Lake Chad basin,” he assured.

Alongside the Federal Government’s support, Governor Zulum pledged additional assistance from Borno State to the troops operating in the region.

The governor was accompanied by Senator Kaka Shehu Lawan of Borno Central, Special Advisers Hon. Idrissa Jidda and Hon. Mustapha Dalatu, Hon. Yuguda Saleh Vungas, Chairman of the Borno State Social Investment Programme, the Chairman of Ngala Local Government Area, and his Principal Private Secretary.

Zulum meets with Cameroonian troops after deadly Boko Haram attack

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Tribunal upholds Nigerian government $220m fine against Facebook, WhatsApp

Published

10 hours ago

April 25, 2025

Trends Admin

Tribunal upholds Nigerian government $220m fine against Facebook, WhatsApp

The Competition and Consumer Protection Tribunal on Friday delivered its judgement in the appeal filed by Meta Platforms Incorporated (Facebook) and WhatsApp LLC against the Federal Competition and Consumer Protection Commission (FCCPC), affirming the Commission’s authority and actions in nearly all the contested issues.

A statement signed by Ondaje Ijagwu, Director, Corporate Affairs of the FCCPC, said the tribunal specifically determined that the Commission should comply with prevailing laws, discharged its mandate, and exercised its powers within the confines of the 1999 Constitution (as amended).

It ruled that the multiple actions by WhatsApp and Meta, for which the Commission made findings of violations, were correctly identified, and that the Commission did not err in making those findings.

“In addition to upholding the major aspects of the FCCPC’s Final Order, the Tribunal awarded the sum of $220 million against Meta Platforms Incorporated and WhatsApp LLC as an administrative penalty, and further awarded $35,000 to the FCCPC as cost of investigation.

“The tribunal’s three-member panel was led by Honorable Thomas Okosun,” the statement said.

WhatsApp and Meta’s legal team was led by Professor Gbolahan Elias (SAN) while the FCCPC’s legal team was led by Mr. Babatunde Irukera. Both teams had made their final arguments on behalf of their respective clients on January 28, 2025.

PlatinumPost reports that FCCPC had on on July 19, 2024, issued a Final Order imposing a $220 million administrative penalty after concluding that the companies engaged in discriminatory and exploitative practices against Nigerian consumers.

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The case arose from a 38-month joint investigation initiated by the FCCPC and the Nigeria Data Protection Commission (NDPC) into the conduct, privacy practices, and consumer data policies of Meta Platforms and WhatsApp.

Dissatisfied with the Order last year, Meta and WhatsApp appealed to the Tribunal, challenging both the legal basis and the findings of the Commission.

While ruling on Meta’s appeal, the Tribunal also validated the Commission’s investigative procedures and processes.

The Tribunal resolved Issues 1 to 7 largely in favour of the FCCPC, dismissing the appellants’ objections to the Commission’s findings, orders, and legal competence.

One of the central issues (Issue 3) which alleged a breach of fair hearing, was decided in favour of the Commission, with the Tribunal affirming that the FCCPC fully discharged its quasi-judicial responsibilities by affording the appellants ample opportunity to respond.

The Tribunal found no violation of constitutional due process.

On Issue 4, which questioned the Commission’s powers in matters of data protection and privacy, the Tribunal held that the FCCPC acted within its statutory mandate, reaffirming its authority under Section 104 of the FCCPA to regulate competition and consumer protection even in regulated industries.

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On Issue 5, which challenged the Commission’s findings regarding Meta’s privacy policies, the tribunal also resolved in the FCCPC’s favour. The Tribunal found no error in the Commission’s conclusions and held that the privacy policy in question did, in fact, offend Nigerian law.

While Issue 7 was largely resolved in favour of the Commission, the Tribunal set aside Order 7 of the Commission’s Final Order, stating that it lacked sufficient legal basis.

While expressing delight at the landmark judgement, FCCPC Executive Vice Chairman/CEO, Mr. Tunji Bello, thanked the Commission’s legal team for their exceptional diligence and forensic skills in assembling evidence and marshalling their argument.

He restated FCCPC’s unwavering commitment to not only championing the rights of Nigerian consumers but also ensuring fair business practices in the country in accordance with FCCPA (2018) and consistent with the Renewed Hope Agenda of President Bola Ahmed Tinubu.