The removal of fuel subsidies in Nigeria has curbed cross-border fuel smuggling by equalising prices, says NNPC GCEO Mele Kyari.
[dropcap]T[/dropcap]he removal of fuel subsidies in Nigeria has significantly reduced cross-border smuggling of Premium Motor Spirit (PMS), according to the Nigerian National Petroleum Company Limited’s Group Chief Executive Officer, Mele Kyari.
He highlighted that the subsidy created a price disparity, making smuggling profitable, but the removal has now equalised fuel prices across borders.
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The Nigerian National Petroleum Company Limited (NNPCL) has reported a significant reduction in cross-border smuggling of Premium Motor Spirit (PMS) following the removal of fuel subsidies.
This was confirmed by the Group Chief Executive Officer (GCEO) of NNPCL, Mele Kyari, during an interview with Channels TV.
Kyari explained that prior to the removal, the fuel subsidy had created a substantial price disparity between Nigeria and neighbouring countries, making smuggling a lucrative business for those exploiting the price difference.
“Smugglers were incentivised by the high profits they could make by transporting fuel across borders,” Kyari stated.
However, the removal of the subsidy has brought about a notable change. The new fuel pricing structure has eliminated the profitability of smuggling by levelling the cost of PMS between Nigeria and its neighbouring countries.
This development has been instrumental in addressing the long-standing issue of illegal fuel transportation across Nigeria’s borders.
Kyari further emphasised that this move has not only reduced smuggling but also ensured price parity and fairness for consumers within Nigeria’s energy market.
“The removal of fuel subsidy in Nigeria has been a game-changer in the fight against cross-border smuggling,” Kyari said.
This positive shift in the energy sector is expected to bring stability to the market, ensuring that Nigerians pay fair and equalised prices for fuel.
