OPERATORS SAY FG HAS SAVED N400BN ON SUBSIDY REMOVAL IN ONE MONTH

Oil marketers yesterday said the Federal Government has so far saved about four hundred billion naira as a result of the removal of subsidy on petrol, since May 31, 2023, when the initiative was officially implemented.

Also, the oil dealers stated that there was a high possibility for the cost of petrol to rise in July, going by the recent floating of the naira against the United States dollar by the Federal Government.

The Central Bank of Nigeria unified the country’s exchange rates into the Investors and Exporters window on June 14, 2023, allowing market forces to determine the exchange rate.

It was gathered that going by the revelation of the Nigerian National Petroleum Company Limited as regards the amount being spent previously on subsidy every month, Nigeria had now saved hundreds of billions after halting the subsidy regime in May.

The National President of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Chinedu Okonkwo, stated that marketers had been told how much the NNPCL was spending on subsidies monthly, referring to the comments of the firm’s Group Chief Executive Officer, Mele Kyari, during a meeting with oil sector operators in February.

Commenting on petrol imports by independent marketers, Okonkwo stated that the oil dealers were holding meetings about this.

Although Okonkwo admitted that petrol prices would rise in response to forex rates, he argued that the removal of subsidy would not only lead to a continuous increase in PMS cost.