Thread by @FinPlanKaluAja1

Subsidy is pricing. Paying a subsidy on PMS means the Nigerian Federation (not just FGN) pays a part of your fuel cost. Removing subsidy means you the buyer pays all of the fuel cost.

Deregulation means that fuel "cost" is not decided by the FGN but by the seller.

Today, May 2019, Oil prices are low, thus no need for the Federation to pay a part of your fuel bill, so no subsidy on imported PMS on retail price.

However the cost of fuel or the selling prices is still fixed by the Federal Government, hence no deregulation

“There is no fuel subsidy anymore in Nigeria. It is zero subsidy forever.” “There would be no resort to either fuel subsidy or under-recovery of any nature. NNPC will play in the petroleum marketplace, just like another marketer in the space.”

Mele Kyari NNPC April 7th 2020

The NNPC statement on the 7th would be a strategic shift......if it stopped there. let me post the next sentence by the GMD NNPC Group

“But we (NNPC) will be there for the country to sustain the security of supply at market price,”

Translation. Retail not deregulated. if oil prices rise tomorrow, NNPC will step in and import and sell at fixed government approved prices..(my own translation)

So summary, the downstream sector is not deregulated, and PMS subsidy not removed, its just not being paid because its zero.

If crude oil prices rice, subsidy will kick in again..
Question is why? Does Nigeria need cheap fuel in place of free education?

Another debate looms

Post script:

I am yet to merger the Dangote Refinery into the system

The Refinery is in an export free zone, thus it "imports" crude oil from Nigeria to Lekki and will "export" PMS from Lekki to Lagos.

At what price?

That will be determined by how much it pay FGN for Crude