Tinubu laments fuel subsidies impact on Nigeria’s downstream sector

0 49

Get real time updates directly on you device, subscribe now.

Oando CEO Wale Tinubu in a recent interview in Lagos commented on a Nigerian government cap on petrol prices at below-market costs that has caused many private retailers to stop imports. This has left the state-owned Nigerian National Petroleum Corporation to handle supply and effectively subsidise fuel for Nigerians.

“It’s not popular to increase petrol prices,” the CEO said. “The reason we don’t have a country that is exporting petroleum products is because of subsidies. “Our refineries were never repaired because they never had enough cash flow to fix them. That’s because they were always selling product at a discount.”

Nigeria restricts pump prices to 145 naira a litre (40 US cents). That makes the country — a member of the Opec cartel — one of the 10 cheapest places in the world to buy petrol, according to GlobalPetrolPrices.com.

Source: Business Day South Africa

Subscribe to our newsletter

Get timely updates on Local Content and other Energy industry related news
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time

Leave A Reply

Your email address will not be published.