Petroleum product marketers contend that selling crude oil to the Dangote Petroleum Refinery and other regional refineries at discounted prices is the only way to protect Nigerians from the shock of an unexpected spike in gas prices.
The marketers, therefore, urged the Federal Government to sell crude oil to domestic refiners with a subsidy to prevent a sharp increase in petrol prices.
Specifically, the Independent Petroleum Marketers Association of Nigeria appealed to President Bola Tinubu to consider subsidising crude prices while also extending the naira-for-crude deal to other modular refineries operating in the country.
According to The PUNCH, the Dangote refinery recently effected a price hike, pushing the pump price of petrol to N839 per litre at MRS and other filling stations.
A few days later, crude prices surged above $70 per barrel in the global market, fuelling speculations that petrol prices could rise to N1,000 per litre in Nigeria, especially in locations far from the refinery or major tank farms.
Speaking on the development, the IPMAN spokesman, Chinedu Ukadike, said a subsidised crude oil supply had become critical to absorbing the shock of any possible price surge.
Crude oil prices, which serve as the main feedstock for refineries, change constantly, and such fluctuations directly affect the prices of petrol, diesel, and other fuels.
Ukadike said the Federal Government should offer refineries a ‘special deal’ on crude oil to act as a buffer, helping to keep pump prices stable even when global crude prices rise. In an interview with our correspondent, he said, “We need to consider crude oil subsidy.
The Federal Government can see how to subsidise crude oil being given to Dangote in naira.”
According to him, subsidised crude would help prevent what he described as a sudden increase in petroleum product prices, which often impacts the cost of domestic goods and services.
“The subsidy will ensure that there is no sudden increase in domestic goods and services. We are making this request now that the Federal Government should subsidise the crude oil it sells to Dangote and other refiners producing fuel locally,” he stated.
The IPMAN spokesman explained that the reason the refinery recently asked marketers to top up payments already made for petroleum products by N100 per litre was due to the rise in global crude prices, urging the Federal Government to consider the possibility of a crude subsidy.
