FG Denies Subsidy Return, as More Fuel Stations Shut Down

The Federal Government has denied the reintroduction of subsidy on Premium Motor Spirit, popularly called petrol, amid the closure of many filling stations nationwide due to various challenges in the downstream oil sector.

It also said the pockets of queues observed by motorists in petrol stations across the country stemmed from hiccups in product distribution from the South to the North, not a lack of supply.

This came as the Nigerian National Petroleum Company Limited, NNPCL also declared on Monday that it would have gone bankrupt in June this year had President, Bola Tinubu not halted subsidy on PMS in May.

The NNPCL also announced that Nigeria would become a net exporter of refined petroleum products by next year, going by efforts to revamp its refineries.

Nigeria, through the  NNPCL, currently imports PMS and other refined petroleum products consumed across the country, which has been ongoing for decades.

The Group Chief Executive Officer, NNPCL, Mele Kyari, told State House Correspondents after an audience with the President at the Aso Rock Villa that fuel subsidy had not been returned.

Kyari’s assertion came barely 48 hours after the Petroleum and Natural Gas Senior Staff Association of Nigeria confirmed the return of fuel subsidy.

Also, oil marketers had repeatedly stated that fuel subsidy had returned, as they explained that the landing cost of petrol as of last week was N720/litre. The commodity is currently sold at between N580 and N617/litre, depending on the area of purchase.

PENGASSAN’s National President, Festus Osifo, had said the government still subsidised petrol due to the cost of crude oil in the international market and the exchange rate.

But while arguing that supply remained robust, Kyari explained that the full deregulation of the downstream sector had created market competition.

He said this phenomenon had led to minuscule price variations across gas stations, with consumers naturally patronising marketers with a lesser pump price.