Five things you need to know about fuel subsidy removal
President Bola Tinubu announced the elimination of fuel subsidies in his inaugural address on May 29. As a result of the announcement, the price of premium motor spirits, also known as petrol, increased, with some fuel stations selling the fuel for as much as N700 per litre.
Contrary to expectations that the NNPCL would increase the official price of fuel in June, they did so on May 31st, two days after Tinubu announced the elimination of fuel subsidies.
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The NNPCL stated that the Federal Government has not made any subsidy payments since 2022, and that as of March 2023, the FG owes the NNPCL N2.3 trillion in fuel subsidy money.
With the elimination of fuel subsidies, here are five facts about the NNPCL and the fuel market.
1) Although the NNPCL is still selling old inventory, the company has explained that it must sell at the new price in order to restock.
2) The NNPCL will no longer be the country’s sole importer of fuel.
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3) The NNPCL will no longer set the market price for fuel. The seller will determine the selling price.
4) Market forces will determine the price of petrol on the open market.
5) However, in order to prevent citizens from being taken advantage of, government officials would be on high alert.
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