By Chioma Obinagwam
The NNPC Limited has been advised to stop the export crude, but sell it to local refineries as a way of addressing the issue of galloping prices of Premium Motor Spirit (PMS) in Nigeria.
Confiance News sighted this advice in a post made by a Financial Analyst, Kalu Ajah on Tuesday.
He also stated that the importation of PMS should be open to anyone who would like to play in that space inorder to stimulate competition.
He said: ‘1. Remove PMS subsidy 100%.
2. Sell all of NNPC local crude to local refineries, no export, local refineries pay in dollars. don’t worry the local refineries can export or refine oil but they must deliver their name plate PMS output or lose allocation. NNPC should focus on upstream and exports, growing oil and reserves. divest from downstream
3. Allow anyone import PMS to introduce competition to PMS pricing
4. Introduce a Cash transfer, via eNaira linked to BVN and NIN enabled phones to “poor” Nigerians and commercial bus operators to buy PMS. Price is still market driven , Federation gives you “cash” to buy. you kill PMS illegal exports
5. introduce CNG buses, Thats medium termnot cho cho cho.’
Reacting, an X user known as Ramotu Olaniyi said: “You’re talking economics to deaf illiterates in government. Know this and know peace.”
Confiance News recalls that NNPC Ltd is indebted to international oil traders, amounting to around $6 billion. This debt has caused supply disruptions, leading to fuel scarcity across the country. The financial strain has made it difficult for NNPC Ltd to maintain a steady supply of petrol, forcing the company to increase prices to manage costs.
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