The Ministry of Petroleum Resources and the Nigerian National Petroleum Company Limited have dismissed claims made by various individuals and groups about the reinstatement of subsidy on Premium Motor Spirit (petrol).
They challenged those alleging the return of subsidy to provide evidence to substantiate their claims, reiterating that President Bola Tinubu had already declared the end of petrol subsidy.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, emphasized the government’s stance on the matter while acknowledging the sensitivity of fuel subsidy.
He reiterated that the subsidy on petrol had been discontinued, urging those claiming otherwise to present factual evidence.
Regarding the current petrol pricing mechanism, Lokpobiri stated that while market forces may not entirely determine the price, the government intervenes to alleviate the economic burden on citizens.
NNPC echoed the government’s position, affirming that they recover the full cost of petrol imports and adamant that there is no existing petrol subsidy.
The assertions by the government and NNPC contradicted statements from oil marketers supporting former Kaduna State Governor Nasir El-Rufai’s claim of a subsidy revival on petrol.
According to the marketers, petrol prices would be around N900/litre without subsidy, attributing the current lower prices to the appreciation of the naira against the dollar.
El-Rufai had asserted that the government had resurfaced petrol subsidy, acknowledging policy modifications based on pragmatic leadership.
Independent Petroleum Marketers defended El-Rufai’s stance, emphasizing the fluctuating subsidy linked to the exchange rate of the dollar.
However, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, stood firm on the corporation’s cessation of petrol subsidy, countering claims of its reinstatement.
Despite conflicting statements, the government’s decision to abolish petrol subsidy was reinforced by President Bola Tinubu’s commitment to redirect funds to critical sectors like infrastructure, education, and healthcare.
The announcement led to a surge in fuel prices, transitioning from N197 to current rates between N620 and N700/litre.