Oil marketers in Nigeria and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have called for the removal of fuel subsidy. The groups said the Federal Government should stop the payment of subsidy, which gulped a whooping N60.37 billion in November 2019.

The oil marketers, under the umbrella body, Major Oil Marketers Association of Nigeria (MOMAN) said the Nigerian government should relax control and let the price of petrol be determined by market forces. The association said no matter how long Nigeria distances itself from the decision, it will have to embrace it at some point.

Nairametrics had reported that the Petroleum Product Pricing Regulatory Agency (PPPRA), disclosed that the Nigerian National Petroleum Corporation (NNPC) spent an average of N39.59 subsidizing every litre of petrol imported into the country in November 2019. The NNPC, which is the sole importer of petrol in the country, reported that Nigeria consumes between 55 million and 60 million litres of petrol every day while Punch reported that FG is expected to spend N750.81 bn on petrol subsidy in year 2020.

Subsidy payment degrades industry: Clement Isong, the Chief Executive Officer and Executive Secretary, MOMAN, which comprises of Total Nigeria Plc, Forte Oil Plc, OVH Energy Limited (an Oando licensee), MRS Oil Nigeria Plc, Conoil Plc and 11Plc (formerly Mobil Oil Nigeria Plc), subsidy payment degrades operational efficiency and economics of the downstream sector.

“We are consistent in our view that the subsidy payment or subsidy in the petroleum downstream sector degrades operational efficiency and economics of the downstream sector. We don’t think it is good for the industry as a whole. The industry is fraught with malpractices throughout the supply chain and needs improved governance and transparency; we think it is only deregulation that can help us clean up the industry and bring back efficiency.” Isong said.

PENGASSAN’s spokesperson, Fortune Obi, also backed MOMAN’s request, stating that the position of the association remains that subsidy should be removed because the country can’t pay it forever.

Where subsidy payment will be useful: Both associations said the cost of subsidy could be disbursed to finance infrastructure which is in dire need of the capital. Also, while MOMAN said the payment on fuel subsidy could be used to improve the road, PENGASSAN called for the funds to be used on revamping the refineries.

Obi said, “Amount that is to be used for subsidy should be invested in our refineries to give us the quantity of petroleum products we need.” He advised that the government should invite investors and let them operate it as a commercial business.

SOURCE: https://nairametrics.com/2019/12/11/oil-marketers-pengassan-call-for-subsidy-removal/

Buhari told Nigerians that he has removed subsidy, the main reason we have petrol move to 145 Naira.
This country is filled with fraudulent people!

For crying out loud how many times will Buhari remove subsidy ?
Subsidy he once told Nigerians he doesn’t know what is called subsidy & Subsidy is fraud
Zombies and their chief executive will never go unpunished for destroying our beloved Gaint of Africa

Lolźzzz... D govt doesn't know how to tell Nigerians dat d subsidy dey claimed to have removed d last tym was a scam so dey are stylishly fueling others to advocate and push d idea and sell it to Nigerians so it doesn't look like it was their idea all along... Bunch of confused scammers

So much fraud in the subsidy scheme

Tinubu should tender an unreserved apology to Goodluck Jonathan and by extension to Nigerians, for the rally he organised painting him black when he wanted to remove subsidy.

It's obviously obvious that subsidy is not sustainable, coupled with the fact that it aides massive fraud.

Even Buhari that said he does not know what is subsidy has turned out to pay the highest subsidy in the history of this country.

Price of fuel skyrocketed to #145 from #85 under Buhari.

His promise was to build refinery with the subsidy deducted.

3 years later, No improvement on our refinery.

2020, according to all suggestions from this demons, price hike is inevitable.

Where is the integrity? Where are the promises?

After all the propaganda about fuel subsidy that same government is still paying it five years after......No wonder they desperately want to shut Nigerians up ......because they don't want to be questioned