The Federal Government has saved over N400 billion as a result of the removal of subsidy on Premium Motor Spirit, often known as petrol, since May 31, 2023, when the initiative was officially implemented, as reported by oil marketers on Thursday.
Furthermore, oil dealers stated that the cost of gasoline will likely climb in July, owing to the Federal Government’s recent floating of the naira against the US dollar.
The Central Bank of Nigeria unified the country’s exchange rates into the Investors and Exporters window on June 14, 2023, enabling market forces to set the exchange rate.
Operators in the downstream oil sector told our correspondent on Tuesday that, based on the Nigerian National Petroleum Company Limited’s revelation about the amount previously spent on subsidy every month, Nigeria had now saved hundreds of billions since the subsidy regime was suspended in May.
“They (the government) are making money right now.” At least, the government has saved hundreds of billions of naira and dollars by eliminating the subsidy. This is because we know how much they lose every month,” said Chinedu Okonkwo, National President of the Independent Petroleum Marketers Association of Nigeria.
Okonkwo informed our reporter that marketers had been told how much the NNPCL spent on subsidies on a monthly basis, referring to comments made by the firm’s Group Chief Executive Officer, Mele Kyari, during a February meeting with oil sector operators.
“Today, by law and the provisions of the Appropriation Act, there is a subsidy on the supply of petroleum products, particularly PMS imports into our country,” Kyari stated during the meeting. According to current statistics, the landing cost was roughly N315/litre three days ago.
“Our customers are here and we are transferring to each of them at N113 per litre.” That equates to a N202 difference for every litre of PMS imported into the nation. N202 multiplied by 66.5 million litres multiplied by 30 is almost N400 billion in monthly subsidy.”
Okonkwo added that the oil dealers were conducting talks concerning fuel importation by independent marketers.
“We’re meeting with a lot of people who are interested in starting PMS imports.” “We are not sitting on our laurels in this regard,” the IPMAN president added.
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