Marketers and experts have reacted as it becomes obvious that the nation’s petrol subsidy will hit N3 trillion yearly, based on current market realities.
Speaking during the panel session at the ongoing 15th OTL Africa Downstream Week in Lagos yesterday, the Managing Director, Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation, Isiyaku Abdullahi, said the annual subsidy on Premium Motor Spirit (petrol), will rise to N3 trillion if the current market realities persist.
“At $80 crude oil, 60 million litres daily consumption and N411/$1 forex, PMS under-recovery per litre will be N138/litre. Daily PMS under-recovery will be N8.3billion. Annual PMS under-recovery will escalate to N3trillion,” he said.
But in an interview with Vanguard, Thursday, the Ghana National Petroleum Corporation (GNPC), Professorial Chair in Oil and Gas Economics and Management, Institute for Oil and Gas Studies, University of Cape Coast, Ghana, Prof. Omowumi Iledare, stated that it does not make sense to fund that level of petrol subsidy.
Specifically, he said: “It does not make economic sense. A lot can be done with N3 trillion to attract maximum benefits to Nigeria and Nigerians.”
Similarly, in another interview with Vanguard, the National President, Oil and Gas Service Providers Association of Nigeria (OGSPAN), Mazi Colman Obasi, said: “How can a country produce crude oil and be importing petroleum products? How can we have poorly maintained refineries and prefer massive petrol importation? Where else do they run the oil industry like that?’’
Continuing, he said: “Cooking gas is supposed to have become common use in every kitchen in Nigeria as of today. But the price of cooking gas has gone beyond the reach of the common people of Nigeria. Nigerians should also be converting to gas in order to reduce the high demand for petrol.”
The Chairman of MOMAN, Mr. Olumide Adeosun, had earlier urged the Federal Government to deregulate the nation’s downstream sector without further delay in line with the provisions of the Petroleum Industry Act (PIA). (Vanguard)