President Bola Tinubu has reportedly saved about N400 billion with the decision on fuel subsidy removal.
This was revealed by the Petroleum Marketers Association of Nigeria (IPMAN) while commending the move by the Federal government to remove subsidy on Premium Motor Spirit.
IPMAN National president, Independent, Chinedu Okonkwo particularly decried the huge loss of government revenue to subsidy payment in the past.
Stressing that billions of taxpayers money bad been saved with the removal of subsidy, the marketers said they have began steps to import petroleum products independently.
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“We are holding meetings with a lot of people who are interested in commencing PMS imports. We are not resting on our oars about this,” the IPMAN president stated.
Although Okonkwo admitted that petrol price would rise in response to forex rates, he argued that the removal of subsidy would not only lead to a continuous increase in PMS cost.
“The exchange rate will also move up or down depending on how we manage our crude oil, which is our foreign exchange earner. By the time we begin to meet our OPEC quota and other areas of generating foreign exchange, the naira will begin to firm up,” Okonkwo said.
“And this will result in cheaper fuel. So we should not be thinking that the cost of fuel will continue to rise. The floating of the naira is good because at the previous level, you only access the dollar at the official rate based on who you know.”
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