Operators in the downstream oil sector have revealled that Federal government has so far saved about N400bn as a result of the removal of subsidy on Premium Motor Spirit.
National president, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Okonkwo lamented huge government revenue lost to subsidy.
Okonkwo, however disclosed that with the removal of subsidy, the federal government has saved billions of taxpayers money.
He noted that petroleum marketers have begun meeting on how to start importing petroleum products independently.
“We are holding meetings with a lot of people who are interested in commencing PMS imports. We are not resting on our oars about this,” the IPMAN president stated.
Although Okonkwo admitted that petrol price would rise in response to forex rates, he argued that the removal of subsidy would not only lead to a continuous increase in PMS cost.
“The exchange rate will also move up or down depending on how we manage our crude oil, which is our foreign exchange earner. By the time we begin to meet our OPEC quota and other areas of generating foreign exchange, the naira will begin to firm up,” Okonkwo said.
“And this will result in cheaper fuel. So we should not be thinking that the cost of fuel will continue to rise. The floating of the naira is good because at the previous level, you only access the dollar at the official rate based on who you know.”
Similarly, the President, Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) Billy Gillis-Harry, stated that the cost of petrol would respond to the exchange rate.
Harry reiterated PETROAN’s readiness to work on the import licence approval for petrol while talks is still ongoing with the government on the process of fixing the refineries.
