The recent increase in petrol prices before June has raised concerns and questions among Nigerians.
Understanding the reasons behind this price hike and the implications of petrol subsidy removal is crucial.
In this article, we will delve into the key aspects you need to know about the removal of petrol subsidy.
WHY THE PETROL PRICE INCREASE BEFORE JUNE?
- Delaying subsidy removal till the end of June 2023 could have caused serious nationwide fuel scarcity and hardship.
- NNPC Ltd. was owed over N2.8 Trillion and can no longer sustain sufficient supply to the market.
WHY SELL OLD STOCK AT THE NEW PRICE?
- Fuel stations cannot restock if they sell at the old price.
- Nationwide scarcity will manifest if they do not sell at the updated price.
WILL NNPC Ltd. REMAIN THE ONLY SUPPLIER OF PETROL?
- NNPC Ltd. will no longer be the sole supplier of petrol.
- By law, no player can control more than 30% of the market.
WHY DID NNPC Ltd. PUBLISH PRICES?
- NNPC Ltd. does not fix petrol prices for the industry.
- Like other companies, NNPC Ltd. determines its petrol price as the market dictates.
HOW WILL CONSUMERS BE PROTECTED?
- Industry regulators and the Consumer Protection Council will provide control.
- Their role is to ensure fair practices and prevent price gouging.
WILL PETROL PRICE CONTINUE TO RISE?
- Prices will be determined by market forces.
- They could either rise or fall depending on various factors.
THE FUTURE OF PETROL SUPPLY TO DOMESTIC MARKET
- Dangote, NNPC & other domestic refineries will:
- Ensure Petrol availability
- Improve Nigeria’s FX reserve
- Create Employment
- Increase GDP