According to oil marketers, the removal of subsidy on Premium Motor Spirit, commonly known as petrol, since May 31, 2023, has resulted in the Federal Government saving approximately N400bn. On Thursday, Chinedu Okonkwo, the National President of the Independent Petroleum Marketers Association of Nigeria, stated that the government is currently generating significant revenue from this subsidy removal. He emphasized that the government has been losing substantial amounts of money every month prior to the initiative.
Okonkwo further explained that when there is deregulation and no subsidy, the price of petrol will be determined by market forces. It can either increase or decrease. In such a scenario, those who import and sell petrol at lower prices will outperform those who try to profit excessively. Therefore, the pricing and capping of petrol will be determined by market fundamentals. He also mentioned that the floating of the naira, at a time when Nigeria is starting to save money, will not be a fixed arrangement.
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