IPMAN, PETROAN Reject Atiku’s Call to Restore Fuel Subsidy

Former Vice President Atiku Abubakar’s renewed call for the reinstatement of petrol subsidy has been rejected by two major petroleum marketers’ associations, the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Association of Nigeria (PETROAN).

The groups argued that returning to the subsidy regime would not resolve the fundamental challenges affecting Nigeria’s downstream petroleum sector. Instead, they urged the Federal Government to prioritise the rehabilitation of the country’s refineries, pipelines and petroleum depots.

According to Ireporter Online, IPMAN spokesperson Chinedu Ukadike and PETROAN National President Billy Gillis-Harry expressed their positions in separate interviews following renewed debate over petrol subsidy removal and Atiku’s proposal.

Ukadike said the immediate priority should be to ensure that the Port Harcourt, Warri and Kaduna refineries become fully operational. He argued that increased domestic refining capacity would encourage competition among petroleum suppliers and help stabilise pump prices.

He also called for the revival of Nigeria’s petroleum pipelines and 21 depots, stressing that functional infrastructure would provide a more sustainable solution to price volatility than reinstating subsidy.

According to him, increased local refining and competition would eventually reduce pressure on petrol prices while lowering the sector’s dependence on foreign exchange.

Ukadike further advised Atiku to reconsider the proposal to restore subsidy and instead support efforts to get Nigeria’s refineries functioning effectively.

Gillis-Harry similarly opposed the former vice president’s proposal, describing the previous subsidy regime as a major economic burden and a missed opportunity for national development.

The PETROAN president argued that substantial public funds had previously been committed to subsidising petrol rather than being invested in infrastructure and human capital development.

He defended President Bola Tinubu’s decision to remove the petrol subsidy in May 2023, insisting that the policy was no longer financially sustainable.

Gillis-Harry also questioned the logic behind renewed calls for subsidy, noting that the issue had featured prominently during the 2023 presidential campaign, when various candidates presented different positions on its removal.

He further challenged proposals to bring petrol prices down to ₦500 per litre, asking how the government would finance such a reduction without placing additional pressure on public finances.

The PETROAN leader also questioned the idea of subsidising crude oil production, arguing that the cost of producing crude remains a genuine economic expense that must be properly accounted for.

He called on proponents of a subsidy regime to provide clear economic calculations showing what aspect of crude production or petroleum pricing should be subsidised and how such a policy would be funded.

Gillis-Harry maintained that the removal of subsidy had also forced households and businesses to adopt greater financial discipline as they adjusted to the changing economic environment.

The latest development adds another dimension to the ongoing national debate over petrol pricing, with petroleum marketers favouring investment in domestic refining and critical infrastructure rather than a return to the subsidy system.