The monthly importation of Premium Motor Spirit, popularly called petrol in Nigeria has reduced by 50 percent after fuel subsidy removal.
This was according to Nigeria’s Minister of Information and National Orientation, Mohammed Idris while speaking while speaking at the third edition of the ministerial press briefing series in Abuja on Wednesday, February 28, 2024.
Recall that President Bola Ahmed Tinubu during his inaugural speech on May 29, 2023, announced the removal of fuel subsidy. Within 24 hours of this declaration, the Nigerian National Petroleum Company Limited (NNPCL), the country’s sole importer of Premium Motor Spirit (PMS), withdrew the subsidy on petrol.
Consequently, there was a sharp increase in the price of petrol, soaring from around N198 per litre to over N500 per litre initially. Subsequently, prices continued to rise, reaching over N600 per litre, and currently, petrol sells for between N620 and N700 per litre, depending on the location of purchase.
Speaking on Wednesday, Idris stated that subsidy removal had led to the reduction of fuel imports by 50 per cent.
“Petrol importation has been reduced by 50 per cent since the withdrawal of the fuel subsidy.
“What this means is that PMS importation has dropped by about 990 million litres in one month.
“It is also encouraging to state that oil production has risen from 1.22 million barrels per day in the second quarter of 2023 to 1.55 million barrels per day in the fourth quarter of 2023.
“The Nigerian Stock Exchange All Share Index crossed the 100,000 mark – its highest ever, mainly due to the pragmatic reforms initiated by the President, which inspired investor confidence in the Nigerian economy,” Idris said.
The Minister further stated that Nigeria had started to experience the positive outcomes of the reforms initiated by President Tinubu.