Removal of fuel subsidies saves the FG N400 billion in four weeks – Operators

Operators in the downstream oil and gas industry claim that in the past 30 days, the elimination of gasoline subsidies has brought in N400 billion for the federal government.

In an interview with Obasanjonews24 on Friday, Chinedu Okonkwo, national president of the Independent Petroleum Marketers Association of Nigeria, revealed this.

Recall that Mele Kyari, the Group Chief Executive Officer of Nigerian National Petroleum Corporation Limited, NNPCL, claimed that the nation spends N400 billion per month on gasoline subsidies during a meeting with oil and gas entrepreneurs in February.

Okonkwo remarked that the deregulation has a long-term impact when discussing the state of the sector as a result of the subsidy’s elimination and changes in the nation’s foreign exchange market.

Depending on the market-determined price of foreign exchange, the development, in his opinion, would either result in an increase in fuel prices or a decrease.

He continued by saying that the sector’s introduction of compressed natural gas, or CNG, will gradually lessen the burden on the general public.

“You are aware of how much money the government spends each month on fuel subsidies, but that sum of money—either dollars or naira—will be saved.

“The thing is biting, so we have drafted an alternative in Compressed Natural Gas, CNG,” he said. “The government has actually lowered expenditure on fuel subsidies, however the thing is biting.