By Tina Amanda
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has insisted that the Nigerian National Petroleum Company Limited (NNPCL) is paying fuel subsidy be it in differential or recovery cost.
IPMAN Rivers State Chairman, Dr. Joseph Obele, who disclosed this maintained that whatever name NNPC chooses to call fuel subsidy still boils down to monetary Interventions.
According to him, so long as the landing cost of petrol is higher than the selling rate It remains a fuel subsidy.
“The General Managing Director NNPC while responding to the insinuation of stakeholders in the month of August 2023 regarding the return of subsidy regime said they are paying the differentials and not Subsidy.
“The word differentials and Subsidy triggered stakeholders to compare research to ascertain the meaning of differentials.
“Subsidy literally means monetary Interventions by the government in making payment for the extra cost of goods or services for the citizens.
“It was very difficult for the GMD of NNPC to justify that the said differential was not further subsidy payment. In another press interview in the Month of October, most recently, the GMD also said they are recovering the cost of importation and not paying petrol subsidy.
“Importers of Petroleum have lamented the rise in landing cost at the international market, as it is above the retail selling rate in Nigeria. It is obvious that the landing cost today is close to eight hundred nairas (#800) per liter.
“The GMD is correct that they are recovering the difference hence they are selling crude oil for Nigerians and subtracting the extra cost of PMS from the proceeds of the crude.
“Call it recovery, call it differentials, It is all the Fuel subsidy you are paying because landing cost is far above the selling rate.
“What is the difference between half a dozen and six?.
Dr. Obele said further that NNPCL is trying to keep the word of Mr. President of subsidy removal, noting that the more Nigerian refineries are in a state of comatose, the higher fuel prices.
“We understand that the word of Mr President is a bond and it must be upheld on the ground that he said subsidy is gone. Therefore it is appropriate to call it any other name than calling it subsidy just to protect the dignity and integrity of the office of Mr President.
“Nigeria will be saved from this grammatical dilemma when we start refining locally in Nigeria and stop importing from the international market. The external variables in the international market are the reasons for all the unwarranted statements.
“We should anticipate more price turbulence in the international market arising from the recent Israeli and Palestinian tension. The earlier we fix Nigeria-owned refineries, the better for us as a nation”.
