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Cross-Border Fuel Smuggling Drops Following Subsidy Removal, Says NNPCL Chief

[By Abigail Philip David]

The removal of fuel subsidies in Nigeria has led to a significant decrease in cross-border smuggling of Premium Motor Spirit (PMS), according to the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mr. Mele Kyari.

In an interview with Channels TV on Sunday, Kyari explained that the subsidy previously created a price gap between Nigeria and neighboring countries, making fuel smuggling highly profitable. He noted that before the subsidy removal, smugglers were incentivized by the substantial price difference to illegally transport fuel across borders.

“The removal of the subsidy has adjusted fuel prices, making smuggling unprofitable,” Kyari stated, adding that the current price parity between legal and illegal PMS transportation discourages smuggling.

Kyari also highlighted that, beyond curbing smuggling, the subsidy removal has helped establish price equalization between Nigeria and neighboring countries. This development, he said, ensures that consumers are now paying fair and more accurate prices for fuel.

“The removal of the fuel subsidy has been a game-changer in combating cross-border smuggling,” Kyari emphasized, calling it a positive step for Nigeria’s energy sector.

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