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It stated that while the average price of petrol in Nigeria was about N701/litre, the average cost of the product in neighbouring countries was N1,787/litre, a development that heightened PMS smuggling out of Nigeria in the past two weeks.
The Federal Government, on Monday, raised the alarm over the renewed smuggling of Premium Motor Spirit, popularly called petrol, following the massive hike in the pump price of the commodity in neighbouring countries
The Comptroller-General of the Nigeria Customs Service, Adewale Adeniyi, who disclosed this at a press conference in Yola, said the NCS had to join forces with the Office of the National Security Adviser to tackle the menace
Speaking under the auspices of the Office of the National Security Advisor, he said, “Today, we are here to update members of the public on the strategic efforts of the Nigeria Customs Service in addressing the critical issue of fuel smuggling through the recently launched Operation Whirlwind.” Should the FG and NASS fail to act on its ₦250,000 demand by Tuesday, NLC and TUC organs would meet to decide on the resumption of the nationwide strike that was eased last wee
The Federal Government took the audacious strategic choice to stop the fuel subsidy around a year ago. Reducing pressure on our foreign exchange reserves, diversifying economic growth, and freeing up significant money that could be channeled to other productive areas of the economy were the goals of this important move.
“The immediate effect was an increase in fuel prices to reflect the state of affairs. Studies that compare fuel prices throughout West and Central African nations still reveal that Nigeria has the lowest pricing, the speaker said, “despite the pressures of inflation and financial strain on households, especially those with lower incomes.”
Adeniyi continued, “PMS is sold for an average price of N1,672.05 in the Republic of Benin and N2,061.55 in Cameroon, but it is sold in Nigeria for N701.99. Based on fuel price data from opensource, the price of PMS varies between N1,427.68 in Liberia and N2,128.20 in Mali, with an average of N1,787.57 in other countries in the region.
The head of customs claimed that although this comparative pricing advantage benefited Nigerian people, it also provided a profitable incentive for smuggling PMS out of the country, where costs were two to three times higher.
The head of customs claimed that although this comparative pricing advantage benefited Nigerian people, it also provided a profitable incentive for smuggling PMS out of the country, where costs were two to three times higher.
He claimed that the Nigeria National Midstream and Downstream Petroleum Regulatory Authority’s data on the average daily evacuation of PMS to different states in the country supports this.
In his speech, which was made available to our correspondent in Abuja, he said, “The (NMDPRA) report shows significant changes in evacuation patterns that are not justified by corresponding economic and demographic changes, particularly in border states that share contiguous borders with our neighbours.
“Between April and May 2024, Borno and Kebbi states recorded 76 and 59 per cent increases in evacuations, ranking among the top three states. On a year-on-year basis (May 2023 and May 2024), Sokoto and Taraba states recorded the most substantial increases in evacuations, with 247 and 234 per cent increases, respectively.
“Border states like Katsina and Kebbi also recorded more than 50 per cent increases in evacuation. These discrepancies, along with the price disparity between domestic PMS (N701.99) and neighbouring countries (N1,787.57), raise concerns about the actual delivery of PMS and the potential for smuggling
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