The Nigerian National Petroleum Company Limited (NNPCL) and fuel marketers, represented by the Independent Petroleum Marketers Association of Nigeria, are entangled in a new dispute over the removal of petrol subsidies.
The clash comes amidst the depreciation of the naira against the U.S. dollar, with conflicting views on the existence and extent of fuel subsidies. Economists argue that subsidies are increasing due to the falling naira, but the NNPC contends that it is recovering full costs on petrol imports. Marketers project a price of N1,200/litre in a free market, emphasizing the impact of currency devaluation and crude oil costs.
The article explores the divergent opinions, the government's position, and the economic, social, and political factors influencing subsidy policies.
Additionally, the NNPC reports a surge in crude oil theft incidents in the Niger Delta, further complicating the nation's energy landscape.
