Petrol smuggling amidst subsidy removal | The Guardian Nigeria News - Nigeria and World News ⬇️
Confirmation by the Nigerian Customs Service that petrol is still being smuggled out of the country to neighbouring countries is worrisome. The revelation signposts an anomaly in the deregulation of the downstream sector that has recently featured the removal of fuel subsidy, thus shooting up the price of fuel and collaterally invoking inflation in virtually all sectors of the economy, particularly transportation and food items cost.
For decades, subsidies existed in Nigeria because the Federal Government was fixing the price of petrol for consumers below the international price, and paying for the difference with public fund. With the removal of subsidy, government has stopped, or is believed to have stopped paying for the difference between the price at which the product is sold per litre to consumers and the actual cost of importing the commodity.
Stoppage of subsidy was expected to make smuggling economically unattractive and ultimately stop it, since smuggling persists because the perpetrators are still making high profits from it.
It is instructive that the volume of the commodity consumed in the country before the removal of petrol subsidy has reportedly dropped by an average of about 18.5million litres with serious consequences for businesses, especially small and medium scale enterprises, and the quality of life of Nigerians.
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