Group Chief Executive Officer of Nigerian National Petroleum Company (NNPC) Limited, Mr. Mele Kyari has said that removal of fuel subsidies in Nigeria has significantly reduced cross-border smuggling of Premium Motor Spirit.
Gatekeepers News reports that the NNPC boss said this during an interview with Channels TV on Sunday.
Kyari said that the subsidy created a price disparity between Nigeria and neighbouring countries, making smuggling highly profitable.
He emphasised that before subsidy removal, the price difference was substantial, thereby encouraging smugglers to transport fuel across borders.
The CEO noted that the removal of subsidy however has effectively calibrated fuel prices, eliminating the profitability of smuggling.
Kyari said the cost disparity between legitimate and illegal transportation of PMS is now significant, with legal transportation being much less profitable.
He added that 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.”
