The President, Bola Tinubu, declared the abolition of the fuel subsidy during his inaugural speech on May 29th. The announcement increased the price of premium motor spirits known as fuel, with some filling stations charging as much as N700 per liter.
Contrary to expectations, the NNPCL increased the official price of petroleum on May 31, two days after Tinubu announced the elimination of subsidies.
The NNPCL explained that the Federal Government has not paid any subsidy payments since 2022, and that the FG owes the NNPCL N2.3trn in gasoline subsidy money as of March 2023.
Following the elimination of the gasoline subsidy, here are five facts concerning the NNPCL and the fuel market.
Although the NNPCL continues to sell old stock, the corporation has stated that it has to sell at the increased rate in order to resupply.
The NNPCL will no longer be the country’s primary fuel importer.
The NNPCL will no longer set the market price of fuel. The vendor will decide on the price.
Market forces will decide the cost of fuel in the market.
Government officials, on the other hand, would be on high alert to ensure that residents are not duped.
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