Oil marketers say FG’s petrol discount excludes them, seek 60-day extension

Oil marketers have called on the Federal Government to extend its 30-day petrol discount window to 60 days and include independent marketers, arguing that the current arrangement may limit its reach and benefits for consumers.

In separate conversations with Nairametrics, representatives of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and another independent marketer raised concerns about the policy’s implementation, distribution and long-term impact.

The government recently announced a discount on petrol sold at Nigerian National Petroleum Company (NNPC) retail outlets, with priority given to public transporters nationwide.

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, said the arrangement was not a subsidy but a plan to sell petrol at cost, funded by NNPC’s retail margins rather than the Federal Government budget or Federation Account.

IPMAN National Publicity Secretary, Chinedu Ukadike, questioned how the policy would benefit consumers in communities where NNPC filling stations have limited coverage. He called for independent marketers to be included and the discount period extended to allow enough time to distribute products nationwide.

Another independent marketer, Philp Bulus, welcomed the intervention but stressed the need for transparency to ensure consumers benefit from the reduction.

The marketers’ concerns come amid continued volatility in the downstream petroleum sector, with global crude oil prices rising amid the Middle East conflict involving the United States, Iran and Israel.

Bulus said the effect of the discount on independent marketers would depend on how the arrangement is implemented. If NNPC sells discounted petrol directly to consumers through selected outlets, independent operators could face pressure to lower their pump prices to remain competitive, even if this reduces their margins and affects their operating costs.

He added that if access were restricted to certain buyers or distribution channels, the policy’s impact could be limited, making transparency essential.

He also called on the government and NNPC to clarify participation requirements, eligibility criteria and the pricing mechanism to avoid creating an uneven playing field. According to him, the intervention should lower prices for consumers without unnecessarily disadvantaging independent operators.

Ukadike reiterated his call for a 60-day extension, saying a longer period would allow more marketers to participate and distribute products across the country.

Bulus added that the impact on consumers would depend on the discount size, the volume of petrol covered, the number of beneficiaries and how effectively savings translate into lower retail prices.

Former Vice President Atiku Abubakar had earlier criticised the Federal Government’s proposed 30-day fuel discount at NNPC stations, arguing that the temporary measure would not provide lasting relief from high fuel, transport and food costs.

Atiku also questioned the absence of details on how much motorists would save per litre and whether any savings enjoyed by transport operators would be passed on to passengers through lower fares.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Notify me of follow-up comments by email.

Egyptian billionaire Ahmed Elsewedy’s company secures $2.2 billion power contract in Saudi Arabia

Shell to sell Nigeria gas distribution business to Vaaris Energy

Dangote Refinery’s Ebitda hits $5.5 billion as 9-month profit surges to $4.73 billion