Fuel price goes up in Benin republic 3days after Nigeria declares removal of subsidy

Information gathered reveals that the prices of fuel went up immediately Nigeria announce the removal of subsidy.

Their prices of “Gasoline have risen from 450 CFA to 700 CFA or even 800 CFA”

This actually means some of Nigeria subsidised petroleum products are being smuggled to Benin and they mostly sell the products by the roadside.

“Our product is been used to serve a particular large number of people in Benin.
It’s called Kpayo for Goun,in their native language which means “unoriginal” it’s cheaper to buy the kpayo that’s been exported from Nigeria, than buying from fuel for stations, which they sell at 650 CFA,” local media report.

This new development in fuel prices in Benin is coming 3 days after Nigeria President,

The new president of Africa’s largest democracy, Nigeria, has used his inaugural address to make a major policy announcement to ease pressure on government finances.

Nigeria fifth president since return to democracy in 1999 has end decades of petrol subsidy when he said “fuel subsidy is gone,” during his inauguration speech on 29 May 2023.

It is not clear when the new policy will kick in, but ending the subsidy will lead to a rise in the price of petrol and could have a knock on effect on other prices.

But the subsidy is a huge drain on public finances. Last year it gulped 4.3trn naira ($9.3bn; £7.5bn) and for the first half of this year, 3.36trn naira was budgeted for it.

The new president said the subsidy could no longer be justified and that the funds would instead be spent on public infrastructure and to improve the lives of people.

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