NNPCL Clashes with IPMAN Over Fuel Price Amid Naira Depreciation - The Top Society

NNPCL Clashes with IPMAN Over Fuel Price Amid Naira Depreciation



In a renewed clash between the Nigerian National Petroleum Company Limited (NNPCL) and fuel marketers under the Independent Petroleum Marketers Association of Nigeria, the focus remains on the removal of subsidy on petrol, otherwise known as fuel . This dispute unfolds against the backdrop of the Naira’s depreciation against dollar in both official and parallel markets.

As of Tuesday, the local currency closed at 998/dollar officially, while it traded at 1,225/dollar in the black market. Economists and oil marketers argue that the falling Naira rate is increasing the Premium Motor Spirit (PMS) subsidy. However, the NNPCL counters, asserting it’s recovering full costs on PMS importation.

Bismarck Rewane, CEO of Financial Derivatives Company, clarified on a live TV program that the fuel subsidy was not entirely removed but reduced. Oil marketers suggest a higher subsidy, projecting PMS should sell for N1,200/litre in a free market, considering the weakened Naira and crude oil costs.


The NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, dismisses these claims, reiterating the government’s stance that subsidy on petrol has ceased. President Bola Tinubu’s May 2023 declaration implemented the removal, causing a drastic surge in pump prices.

The National Public Relations Officer of the Independent Petroleum Marketers Association, Chief Ukadike Chinedu, argues for a rising subsidy, projecting the cost of petrol should be around N1,200/litre in a free market. He suggests the government is implementing a quasi-subsidy, moderating the removal’s economic, social, and political impacts.

Related: Filling Stations Defy Government Regulations, Selling Petrol at Inflated Prices Nationwide   

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, adds that subsidy retention is partly due to economic, social, and political considerations. He emphasizes the need for a balanced approach, as complete subsidy removal might lead to economic hardship.

The clash continues amidst these divergent views, with stakeholders emphasizing the necessity for a delicate balance between economic reforms and social welfare in the nation’s petroleum sector.

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