0 Shares 88 Views

NNPCL Boss Says Cross-Border Fuel Smuggling Decreased After Subsidy Removal

gisthub Oct 14, 2024
0 89

The removal of fuel subsidies in Nigeria has significantly reduced cross-border smuggling of Premium Motor Spirit, according to Mr. Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited.

In an interview with Channels TV on Sunday, Kyari explained that the subsidy had created a price disparity between Nigeria and its neighboring countries, making smuggling highly profitable.

He emphasized that prior to the subsidy removal, the price difference was substantial, incentivizing 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 removal of subsidies has led to price parity and equalization 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.”

You may be interested

Military Kills 1,770 Terrorists, Arrests Over 3,000 In North-West – CDS
Government
0 shares25 views

Military Kills 1,770 Terrorists, Arrests Over 3,000 In North-West – CDS

gisthub - Apr 25, 2025

  The Chief of Defence Staff, General Christopher Musa, has disclosed that the Nigerian Armed Forces neutralised at least 1,770 terrorists and arrested…

Bloom PFM earns ISO certification
General
0 shares29 views

Bloom PFM earns ISO certification

gisthub - Apr 25, 2025

Bloom PFM, a Nigerian facility management firm, has earned the ISO 9001:2015 certification, marking a significant step in its pursuit of quality and…

Kenyan Woman Shot Dead By Her Babydaddy After Domestic Squabble In The US
Crime
0 shares23 views

Kenyan Woman Shot Dead By Her Babydaddy After Domestic Squabble In The US

gisthub - Apr 25, 2025

A tragic incident occurred in the United States on Tuesday, April 22, 2025, when Hulda Bochere Mosiori, a 42-year-old mother of four from…

Leave a Comment

Your email address will not be published.

Most from this category