JThe removal of fuel subsidies in Nigeria has significantly reduced cross-border smuggling of Premium Motor Spirit.
This is according to the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mr. Mele Kyari.
Kyari stated this in an interview with Channels TV on Sunday, explaining that the subsidy created a price disparity between Nigeria and neighbouring countries, making smuggling highly profitable.
Before the subsidy removal, Kyrari stressed the price difference was substantial, incentivising smugglers to transport fuel across borders.
However, “the removal of the subsidy has effectively calibrated fuel prices, eliminating the profitability of smuggling”, he said.
Kyari noted that the cost disparity between legitimate and illegal transportation of PMS is now significant, with legal transportation being much less profitable.
In addition to reducing smuggling, the subsidy removal has also brought about price parity and equalisation with the cross-border prices of PMS.
Kyari said, “The removal of fuel subsidy in Nigeria has been a game-changer in the fight against cross-border smuggling.
“For decades, the subsidy created a lucrative opportunity for smugglers to profit from the price difference between Nigeria and neighbouring countries.
“This is a positive development for Nigeria’s energy sector, as it can help to ensure that consumers are paying fair prices for fuel.”
-Advertisement-
Grab our latest Magazine, "Chief Wole Olanipekun, CFR, SAN, A man of wide horizons and deep intentions". Get your order fast and stress free.
For more details about Newswire Law&Events Magazine, kindly reach out to us on 08039218044, 09070309355. Email: newswiremagazine@yahoo.co.uk. You will be glad you did
Download E-Magazine
