WHY PETROL SMUGGLING CONTINUES

The Nigerian National Petroleum Corporation on Thursday said that concerted efforts by the corporation and some federal agencies to tackle the challenge of smuggling of petroleum products have been hindered by existing huge price differences in pump price of petrol in Nigeria and neighbouring countries.

The Group Managing Director of the NNPC, Mele Kyari, said this during a presentation at an interactive session by the Joint Senate Committee on the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper.

According to a statement by the Group General Manager, Group Public Affairs Division, Garba-Deen Muhammad, Kyari said that with a price difference of over N100 per litre between what is sold in Nigeria and in countries around the nation, it was difficult to cage the activities of petrol smugglers.

He said while the corporation was working in concert with other agencies to combat the menace and had made noticeable progress, the battle was yet to be won.

The statement titled ‘How price differentials is fueling petrol smuggling- NNPC’ quoted Kyari as saying, “As long as there is arbitrage between the price that you sell and what is obtainable elsewhere, you can be sure that it is very difficult to contain the situation.”

He emphasised that the activities of smugglers had also made it difficult for the country to determine the actual consumption figures for petrol, noting that the corporation could only know what was trucked out from loading depots across the country but could not determine how much of that was consumed in-country.

On the MTEF assumptions, the GMD reiterated a base oil price scenario of $57 per barrel for 2022, $61 per barrel for 2023 and $62 per barrel for 2024 predicated on a base national production of 1.883 million barrels per day in 2022, 2.234 million barrels per day in 2023 and 2.218 million barrels per day in 2024.

Kyari explained that the assumptions were arrived at after consultations with the Ministry of Finance and other relevant stakeholders while also undertaking a careful appraisal of the three-year historical dated Brent Oil Price average of $59.07 per barrel premised on Platts spot prices among other considerations.

He reiterated that price growth was to be moderated by the lingering concerns over COVID-19, increased energy efficiency as well as obvious switching due to increased utilisation of gas and alternatives for electricity generation.

solja147:
It'll never stop cos d government is in support of it

Modrov:
In summary

Petrol costs between 300 to 400 naira in all our neighbours

Petrol costs 162 naira here

Now imagine buying 10 liters of petrol here and taking it across the border to sell ...

That's a profit made.Easily. Nothing like loss at all. Guaranteed 100%

And everyone from the rich to the poor is cashing out.

Another reason for oil subsidy to go. We cannot be subsiding fuel for ecowas region.

Modrov:
In summary

Petrol costs between 300 to 400 naira in all our neighbours

Petrol costs 162 naira here

Now imagine buying 10 liters of petrol here and taking it across the border to sell ...

That's a profit made.Easily. Nothing like loss at all. Guaranteed 100%

And everyone from the rich to the poor is cashing out.

Another reason for oil subsidy to go. We cannot be subsiding fuel for ecowas region.

Modrov:
In summary

Petrol costs between 300 to 400 naira in all our neighbours

Petrol costs 162 naira here

Now imagine buying 10 liters of petrol here and taking it across the border to sell ...

That's a profit made.Easily. Nothing like loss at all. Guaranteed 100%

And everyone from the rich to the poor is cashing out.

Another reason for oil subsidy to go. We cannot be subsiding fuel for ecowas region.

Modrov:
In summary

Petrol costs between 300 to 400 naira in all our neighbours

Petrol costs 162 naira here

Now imagine buying 10 liters of petrol here and taking it across the border to sell ...

That's a profit made.Easily. Nothing like loss at all. Guaranteed 100%

And everyone from the rich to the poor is cashing out.

Another reason for oil subsidy to go. We cannot be subsiding fuel for ecowas region.

Emu4life:
Subsidy is the only sure thing the poor masses gain directly from the Government

Modrov:


Goverment does not support it.

The smuggling is happening because fuel is far more expensive in neighbouring countries than it is in Nigeria

So anyone buying fuel in Naija and selling it in Cameroon, Niger and Benin is going to earn a profit of N130 per liter sold.

The only way you can stop that is by removing subsidy or by closing the border and building a thick 100 foot wall around Nigeria.

And goverment dont like it because they end up subsidising fuel for other african countries. It's a waste

Help2020:

And when the remove the subsidy the money will be embezzled as usual abi?

Modrov:


Goverment does not support it.

The smuggling is happening because fuel is far more expensive in neighbouring countries than it is in Nigeria

So anyone buying fuel in Naija and selling it in Cameroon, Niger and Benin is going to earn a profit of N130 per liter sold.

The only way you can stop that is by removing subsidy or by closing the border and building a thick 100 foot wall around Nigeria.

And goverment dont like it because they end up subsidising fuel for other african countries. It's a waste

Zico5:

U are not making sense at all. What's that thing that Nigerians have ever gained from this government. Just mention one thing

Modrov:
In summary

Petrol costs between 300 to 400 naira in all our neighbours

Petrol costs 162 naira here

Now imagine buying 10 liters of petrol here and taking it across the border to sell ...

That's a profit made.Easily. Nothing like loss at all. Guaranteed 100%

And everyone from the rich to the poor is cashing out.

Another reason for oil subsidy to go. We cannot be subsiding fuel for ecowas region.

lexy2014:


Is it ghosts that are carrying d petrol across d border to Benin?