Russia, Nigeria PMS subsidies and Petroleum Industry Act | The Guardian Nigeria News - Nigeria and World News

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Russia, Nigeria PMS subsidies and Petroleum Industry Act | The Guardian Nigeria News - Nigeria and World News ⬇️

In Europe, Belgium and the Netherlands are the most dependent on Russian Naphtha with Belgium importing over 50% of its Naphtha requirements from Russia. This is important as most of the gasoline delivered to Nigeria is produced in the ARA region.

Should the Russian Federation decide to halt sale to its western neighbours finding an alternative would and cannot be immediate nor cheap. Indeed, a solution could be to import LNG via cargos from other markets and then degasify the product once procured but this would take much more time and financial resources.

Over time it has become quite clear that maintaining subsidy on gasoline is not sustainable, costing the nation on average $7-10 billion a year in revenue. Although this reality is quite glaring, the government has been unsuccessful in removing subsidy on gasoline due to strong opposition from the general masses to a reform by the nation.

The weight of the subsidy on oil producing areas is stupendous. The 13% derivation does not cover even half the subsidy. In short the oil producing areas been the brunt of the subsidy yet the areas are the poorest in all development aspect. There is no other product that carries this large a subsidy weight in Nigeria.

 

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