As the scarcity of the Premium of Motor Spirit, popularly called petrol, continued on Sunday, oil marketers have stated that the cost of the commodity would cross N800/liter once the subsidy on PMS is removed.
Industry operators had repeatedly stated that the high cost of subsidy on petrol was a burden on the Nigerian National Petroleum Company Limited and contributed to the prolonged crisis in the downstream oil sector. NNPC is the sole importer of petrol into Nigeria.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, recently suggested that the government should gradually withdraw subsidy on PMS, stressing that the budgetary allocation for subsidy would end in June.
But oil marketers told our correspondent that while it could be advisable to remove the subsidy, Nigerians should know that the cost of petrol could cross N800/liter once the commodity was no longer subsidized.