Oil marketers, operating under the Independent Petroleum Marketers Association of Nigeria (IPMAN), have assured Nigerians that there are no plans to increase the cost of Premium Motor Spirit (PMS), commonly known as petrol.
The marketers emphasized that the Nigerian National Petroleum Company Limited (NNPCL), the exclusive importer of petrol, has the capability to absorb under-recovery, easing concerns about potential fuel price hikes.
IPMAN clarified that the NNPCL’s involvement in crude oil sales positions it to manage under-recovery on fuel prices effectively. Other downstream oil sector marketers had ceased petrol importation due to their inability to shoulder such under-recovery costs.
The term “under-recovery” refers to the notional losses incurred by oil companies in the petroleum sector. It arises from the difference between the subsidized price at which oil marketing companies sell certain products and the price necessary to cover their production costs.
In response to recent fears expressed by some Nigerians regarding a possible petrol price increase, IPMAN urged the public not to worry, asserting that the NNPCL has the capacity to handle fuel pricing effectively.
The NNPCL has consistently maintained that fuel subsidy no longer exists, and petrol is a deregulated product. It reiterated that there are no plans to hike the cost of PMS.
Last week, oil marketers had revealed that the cost of petrol could be around N1,200 per litre without subsidies, considering global commodity prices. However, the NNPCL emphasized that it no longer relies on subsidies, recovering its full importation cost of PMS into Nigeria.
In a statement released on Monday, Chief Ukadike Chinedu, the National Public Relations Officer of IPMAN, stated, “We were merely sharing our opinion with the populace on the need for the government to quicken the rehabilitation of the nation’s four refineries to lessen the pressure on the importation of petroleum products into the country.”
IPMAN called on the public to avoid panic buying, assuring that the NNPC has the capacity to manage PMS prices and has guaranteed an ample quantity in the system. The oil marketers reaffirmed their commitment to the government’s agenda and partnership in ensuring a stable fuel supply.
