The National Institute for Policy and Strategic Studies (NIPSS) has assured Nigerians that the price of Premium Motor Spirit (PMS), also known as petrol, will decrease as Dangote Refinery and other local refineries begin operations.
Before the removal of the fuel subsidy, petrol was sold for under ₦200 per litre. However, prices have since surged to approximately ₦930 per litre, depending on the location.
Despite this price hike, NIPSS Director-General Ayo Omotayo expressed optimism that fuel prices will drop in the future when more refineries come online. Speaking on Channels Television’s The Morning Brief on Tuesday, Omotayo explained that the activation of local refineries would drive down the cost of petrol.
“With the removal of the first subsidy, Dangote Refinery is coming on board. We also have other refineries, like the one in Port Harcourt, which has been operational for 110 continuous days, if I counted correctly. These are short-term gains,” he said.
Omotayo forecasted that petrol prices could decrease to ₦750 per litre by the end of the year and that the exchange rate would stabilize.
“We’re looking at prices potentially dropping to ₦750 per litre by year-end. Also, foreign exchange rates are expected to fall to about 1.3 before the year ends, continuing this trend as more refineries become operational. In the long run, we will become a net exporter,” he added.
While acknowledging the hardships Nigerians are currently facing, Omotayo emphasized that the country would ultimately benefit from the policy. He remarked, “The immediate gains are minimal, but in the long run, we will make up for any sacrifices we’ve made today.”
Defending the fuel subsidy removal, Omotayo stated that although the current impact may be tough, it will prove beneficial in the long term. He mentioned, “Most of the benefits will come in the medium and long term. For now, the government has introduced palliatives to ease the burden on the poor. We all need to adjust our spending.”
He concluded by reaffirming that while immediate results may be unclear, the country would recover from the sacrifices made today.
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