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The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, has said that the removal of the Premium Motor Spirit(Petrol) subsidy by the President Bola Ahmed Tinubu administration has brought about price parity.
According to Channel Television, Kyari disclosed this in a recent interview with journalists.
He spoke on the back of the recent hike in fuel by NNPCL retail outlets to N1,030 per liter from N898.
Speaking on the important of fuel subsidy in June last year, Kyari said that it lead to an end to price arbitrage and deincentivized fuel smuggling to neighbouring countries.
“In the last 40 sometime years, PMS has always been subsidized. Fuel Subsidy created arbitrage, that is difference between the price in one location to the other.
“When Mr President announced the removal of fuel subsidy in June what it did was to calibrate price. There is no longer in the value of anyone taking the product to the borders”, he said.
Recall that in June 2024, Tinubu announced fuel subsidy removal which saw the price of fuel increase to above N517 per liter from around N238.
DAILY POST reports that the price hike increased several times in the last months as it stood at N1030 per liter in Abuja.
[DailyPost]