The decision by Nigeria's President Bola Ahmed Tinubu to remove the very popular but expensively scandalous fuel subsidies has reduced the demand for petrol in the West African country and also removed incentives for smugglers. Nigeria had been a popular destination for refined fuel from the EU, and with the current development, the EU refiners need to look elsewhere to break even.

One of Europe's main markets for gasoline has shrunk, threatening to squeeze European refiners, after Nigeria removed fuel subsidies, which destroyed much of the country's domestic demand and a regional market for smuggled fuel.

North America and West Africa (WAF), with Nigeria at the helm, historically have been the top two destinations for petrol exports from Europe, which produces more gasoline than it uses, meaning its refiners rely on exports to support profit margins.

But analysts say the reduction of flows following the upheaval in Nigeria will increase pressure on European refiners, and any winners are likely to be newer Middle Eastern refineries.

At the end of May, Nigeria's President Bola Tinubu scrapped a popular but expensive subsidy on the fuel, which cost the cash-strapped government $10 billion last year. Petrol demand in response fell by 28%, official data showed.

Meanwhile, the black market for smuggled subsidised Nigerian fuel in Togo and neighbouring Benin and Cameroon has collapsed, further reducing demand for shipments via Nigeria.

There is no reliable data on how much fuel was smuggled out of Nigeria under the subsidy regime, but a comparison of estimates from official and independent sources indicate more than a third of petrol could have left state oil firm NNPC's depots every day to be sold illegally abroad.

Without the subsidy, the financial incentive for smuggling disappears.

Average monthly West African (WAF) gasoline imports fell by 56% in the second quarter compared with the first, according to Refinitiv Eikon data.

"The key point is demand from West Africa is drying up," said Refinitiv Lead Oil Analyst Raj Rajendran.

Seasonally, June loadings from the Amsterdam-Rotterdam-Antwerp (ARA) hub to West Africa fell to 629,000 tonnes this year from 895,000 tonnes last year and 1.2 million tonnes in 2021, Refinitiv data showed. Loadings dropped to 627,000 tonnes in July so far this year from 1.5 million tonnes last year and 1.4 million tonnes at the same time in 2021.

https://www.reuters.com/business/energy/end-nigerian-fuel-subsidy-set-squeeze-europes-refiners-2023-07-28/

In Nigeria, poor people are standing on the mandate of criminals, and the criminals inflict them with more pain and poverty.
The poorer they get, the richer the criminals get.

Let The Poor Breath. Suffering and smiling poverty.

When you try deliver them, they tag you names.

The dividends of subsidy removal will soon begin to trickle in...

---

I enjoyed the part of the report that cited that once the subsidy was removed, the financial incentive for smuggling was killed.

Removal of subsidy was a brilliant move by the President. For many years, Nigeria was taking from our purse to feed criminals and foreigners. How do you collect subsidy and still take our fuel to sell it elsewhere? Let our states government step in to help our people by addressing the after-effects.

Subsidy did not help the poor it was meant for.

Wow

God bless Tinubu

We no use again. Make EU, and FG drink the PMS and the crude oil.

Good development.
Let our refineries work first.....

Because up till now we still import refined fuel which price is determined by exchange rate.

If the value of dollar was less than N200.
We wouldn't have been buying fuel this costly.
Simple.

I hope the gains of the removal is not stolen

Doing father Christmas to for other countries when your citizens are in poverty...

emkz:
I enjoyed the part of the report that cited that once the subsidy was removed, the financial incentive for smuggling was killed.

Removal of subsidy was a brilliant move by the President. For many years, Nigeria was taking from our purse to feed criminals and foreigners. How do you collect subsidy and still take our fuel to sell it elsewhere? Let our states government step in to help our people by addressing the after-effects.

Subdisy did not help the poor it was meant for.

Poor man pays transport of 200 naira during subsidy.

Poor man now pays 500 naira after subsidy removal.

You guys should stop this lies!!!

Everyone benefitted from subsidy, directly or indirectly.

The economy runs on petrol because Nigeria has a paltry 5,000 megawatts for a population of 200 million.


Apart from paying more for transportation, the poor will pay more for food because cost of transportation affects prices of foodstuffs.

Blaming smugglers for the subsidy wahala is one being myopic. If a thief keeps breaking your home to steal foodstuffs, would you stop buying foodstuffs and let your family die of hunger because of thieves? No! You will seek for ways to catch the thieves. Instead of bringing in measures to catch smugglers, Tinubu decided to punish millions of Nigerians because of the actions of few smugglers that may not be up to 3,000.

The whole world agree with Tinubu that subsidy has to go, only the world infamous cocaine distributing tribe are against Tinubu right now.

Dotherightthing:
Wow

God bless Tinubu

The gaslighter


You guys are in for a loooong thing

PlayerMeji:
The dividends of subsidy removal will soon begin to trickle in...

I like your choice of words.. 'trickle'!

jmoore:


Poor man pays transport of 200 naira during subsidy.

Poor man now pays 500 naira after subsidy removal.

You guys should stop this lies!!!

Everyone benefitted from subsidy, directly or indirectly.

The economy runs on petrol because Nigeria has a paltry 5,000 megawatts for a population of 200 million.


Apart from paying more for transportation, the poor will pay more for food because cost of transportation affects prices of foodstuffs.

You dey mind them? People seem to have lost their ability to think. They just log on to social media, find the loudest noise and add theirs to make it louder.

jmoore:


Poor man pays transport of 200 naira during subsidy.

Poor man now pays 500 naira after subsidy removal.

You guys should stop this lies!!!

Everyone benefitted from subsidy, directly or indirectly.

The economy runs on petrol because Nigeria has a paltry 5,000 megawatts for a population of 200 million.


Apart from paying more for transportation, the poor will pay more for food because cost of transportation affects prices of foodstuffs.

So what are you suggesting,we should continue providing jobs for Europe when our own is suffering?

tamdun:

So what are you suggesting,we should continue providing jobs for Europe when our own is suffering?

Ask APC government. Buhari had 8 years, pumped billions of naira to fix PH, Warri and Kaduna refinery. Yet, none is working.

You are still providing jobs for Europe after subsidy removal because Nigeria is still importing petrol.

(Disclaimer: I do not work for Tinubu, APC, the government, NNPC, or petrol marketers, lol)

Well, I doubt EU refinereis would be losing money, since we are, after all still importing. And even if Dangote comes on stream tomorrow, we would still have to import. The report is some ten years early.

As for smuggling, some smuggling still goes on, but the cost differential makes it less profitable. At least the smugglers are spending their own money, not government money.

Finally,we need to get domestic refining back on stream, now that petrol is profitable.

Good thing subsidy is gone. At the end of the day, there is only so much of tomorrow's money one can spend today.

All these shenanigans open more leeways for the corruption ridden government to fleece the subsidies to fund the stupendous lifestyle of the overbloated politicians.

JAMO84:
The whole world agree with Tinubu that subsidy has to go, only the world infamous cocaine distributing tribe are against Tinubu right now.

Tinubu have been sniffing cocaine and heroine before others followed given his sensation $460,000 Chicago court forfeiture in 1993 without any attempt to clear his name.

Meanwhile, the balabloo-blu-bulava heroin drug baron kicked against the same policy in 2012 with the infamous Occupy Nigeria protests @ Ojota and Abuja? What have changed now? You lots have to be the most wicked set of humanity

PlayerMeji:
The dividends of subsidy removal will soon begin to trickle in...

Yeah! Like the Tinubu/Shettima budgets for food, foreign travels, estacodes, presidential privileges, 70B for new NASS members, $800M palliatives money about to be embezzled?

ImDStar:
In Nigeria, poor people are standing on the mandate of criminals, and the criminal inflict them with more pain and poverty.
The poorer they get, the rich the criminals get.

Let The Poor Breath. Suffering and smiling poverty.

When you try deliver them, they tag you names.

Are you sure you read the article?

u see am

🤔

When the citizens have been rendered poorer and dumped their vehicles for commercial vehicles or walking, I'm sure that is to be counted as gain to the government of the day.

Their supporters need to rejoice even harder when the statistics on vehicle importation or usage is thrown up.

Una never understand where una dey go.

Niger and Benin Republic go soon close their borders to Nigerian refugees.

K

Lies, tilumbu is a bad omen

Okay

Ok oo

Where is dangote refinery and 32 other Nigerian with license

Running promo check here

Mtcheew

Clowns
What's still hindering the private refinery owned by evil politicians from functioning?
I taught agbadorianzzz celebrated it, what's happening?