After the termination of petroleum subsidies by the government, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) estimates that fuel prices in Nigeria will range between N360 and N400 per litre.
Festus Osifo, president of PENGASSAN, disclosed this information to journalists on the margins of the association’s National Executive Council (NEC) meeting on Tuesday in Abuja.
A few days earlier, marketers and other organisations in the downstream sector of the Nigerian petroleum industry predicted that the elimination of subsidies would increase fuel prices to N750 per litre.
The Nigerian Minister of Finance, Zainab Ahmed, stated in January that it would be more prudent for the government to begin implementing its fuel subsidy policy in June.
Mr. Osifo stated on Tuesday that the Nigerian National Petroleum Corporation (NNPC) Limited, as the sole importer of premium motor spirit (PMS), will set the price of petroleum using the CBN exchange rate.
“The NNPC is the only importer of PMS into Nigeria at now. The NNPC utilises a CBN exchange rate that yields between N400 to N450 per dollar, depending on the day and the window being viewed. Mr. Osifo stated that PMS prices should be in the range of N360 to N400 if this factor is included in the current model.
He stated that the association has ordered all of its branches across Nigeria to make fuel available to People and has threatened to remove the licences of petroleum marketers who hoard gasoline.
“Despite continuing our support for the complete deregulation of the industry and the key milestone reached in this regard, we recommend that efforts be made to accelerate the present refinery rehabilitation process and bring them back on track in a timely manner,” he said.
He stated, however, that the incoming administration must handle the currency swap and fuel shortages across the country, and that Nigerians must have access to palliatives to soften the effects of the loss of petroleum subsidies.