Minister directs sales of fuel above N1k to prevent smuggling

Minister directs sales of fuel above N1k to prevent smuggling

The Minister of State for Petroleum Resources, Heineken Lokpobiri has directed that the Nigerian National Petroleum Company Limited(NNPCL) must sell petrol above the landing cost, which currently stands at N1,117 per litre, to prevent the smuggling of the products to neighbouring countries.

Lokpobiri who disclosed this in Abuja, adding that security agencies are complicit in smuggling activities.

He said unless the NNPC Ltd imports and sells petrol above the landing cost, smugglers would continue to move petroleum products to neighboring countries.

Recall that the group chief executive officer of the NNPCL, Mele Kyari had last month met the Comptroller General of Nigeria Customs Service (NCS), Bashir Adewale Adeniyi on the rapid impact of the NCS’ “Operation Whirlwind” in reducing the smuggling of Premium Motor Spirit (also known as petrol) across Nigeria’s border communities.

During the meeting, Kyari said PMS evacuation to border states had decreased from 32 million litres per day to about 25 million litres within just two months.

The federal government had, in May 2023, removed the subsidy on petrol, which raised the price from about N197 to about N650 per litre.

While PMS is sold at an average of N701.99 in Nigeria, it is sold at an average of N1,672.05 in the Republic of Benin and N2,061.55 in Cameroon. In other countries around the region, the price of PMS ranges from N1,427.68 in Liberia to N2,128.20 in Mali, averaging N1,787.57, according to the fuel price data obtained from trading economics statistics.

This development had heightened PMS smuggling out of Nigeria.

Lokpobiri’s stated at the event that NNPC’s sale of imported fuel at a price above the landing cost will bridge the potential profit gap and curb smuggling of the product to neighbouring countries for high profit-making by those involved in the shady business.