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The absence of subsidies in neigbouring countries has created the incentive to smuggle about 30 per cent of petrol meant for Nigeria to the neighbouring nations.
According to a publication by the Major Oil Marketers Association of Nigeria on Tuesday , Nigeria had been subsidising petrol for neighbouring nations for many years.
In the publication , which was signed by the MOMAN Chairman , Adetunji Oyebanji, and sighted by our correspondent in Abuja , the oil marketers stated that the continued payment of subsidy on petrol was not sustainable .
They argued that in many neighbouring countries that had no oil , the issue of subsidies on petrol products did not exist .
“ In fact , absence of subsidies in our neigbouring countries has for many years fuelled the incentive to smuggle an estimated 30 per cent of our daily consumption ; in effect , we have been subsidising our neighbours , ” MOMAN stated .
It added, “ We must understand that our oil resources are running out . If this is not enough cause for concern , every day , we see alternative forms of energy being developed and becoming more viable.
“ This inevitably will mean that one day in the future , we will either run out of oil or no one will want to buy it because of cheaper alternatives. ”
The association noted that the question then becomes how we could afford subsidies at such time .
It said some other oil rich countries decided to go the route of unbridled subsidies but were currently flirting with bankruptcy .
The major marketers observed that as a consequence of deregulation , prices at the pump would have to adjusted to reflect the realities of changes in ex -depot prices by the Pipelines Product Marketing Company .