Nigeria removes fuel subsidy
The Nigerian Federal Government Wednesday afternoon finally removed subsidy from sale of Premium Motor Spirit, PMS, also known as petrol.
It reportedly added that a benchmark of N145 per litre, as new recommended pump price, at which any trader, irrespective of the source of foreign exchange used to import cargo is guaranteed adequate profit.
The government said in order to increase and stabilize the supply of the product,
any Nigerian entity is now free to import the product, subject to existing quality specifications and other guidelines issued by Regulatory Agencies.
“All Oil Marketers will be allowed to import PMS on the basis of FOREX procured from secondary sources, and accordingly PPPRA template will reflect this in the pricing of the product.”
The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, stated that the new policy, “will lead to improved supply and competition and eventually drive down pump prices, as we have experienced with diesel. In addition, this will also lead to increased product availability and encourage investments in refineries and other parts of the downstream sector. It will also prevent diversion of petroleum products and set a stable environment for the downstream sector in Nigeria.”
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