The Nigerian Minister of State for Petroleum Resources, Heineken Lokpobiri, has mandated the NNPCL to sell petrol above N1,117 per litre to combat smuggling. This directive aims to stabilize domestic fuel prices and reduce illegal trade, as petrol is significantly cheaper in neighboring countries.
The Nigerian Minister of State for Petroleum Resources, Heineken Lokpobiri, has ordered the Nigerian National Petroleum Company Limited (NNPCL) to sell petrol above the current landing cost of N1,117 per litre. This measure aims to deter the rampant smuggling of petroleum products to neighboring countries, a practice that has been exacerbated by the previous removal of fuel subsidies in May 2023, which raised petrol prices significantly.
Lokpobiri emphasized that the involvement of security agencies in smuggling activities complicates the situation. He stated that selling petrol at prices above the landing cost would reduce the profit margin for smugglers, making the illegal trade less attractive. Currently, while petrol averages N701.99 per litre in Nigeria, it is sold for as high as N2,061.55 in Cameroon and over N1,672.05 in the Republic of Benin.
Recent discussions between NNPCL's Group CEO Mele Kyari and the Comptroller General of Nigeria Customs Service revealed a decrease in petrol evacuation to border states, dropping from 32 million litres to about 25 million litres per day in just two months. Lokpobiri's directive is seen as a crucial step to address the smuggling crisis, aiming to stabilize the domestic fuel market and ensure fair pricing for Nigerian consumers.
