NIGERIA: Petrol Prices To Drop to ₦750 Per Litre By Year-End, Says NIPSS

By Ameenat Hamzat, Lagos, Nigeria

The National Institute for Policy and Strategic Studies (NIPSS), has assured Nigerians that the price of Premium Motor Spirit (PMS), commonly known as petrol, will decline, as local refineries including Dangote Refinery, ramp up production.

Before the removal of the fuel subsidy, petrol was sold for less than ₦200 per litre. However, prices have since surged to approximately ₦930 per litre, varying by location.

Speaking on The Morning Brief on Channels Television on Tuesday, NIPSS Director-General, Ayo Omotayo, expressed optimism about future price reductions, citing increased local refining capacity as a key factor.

He said: “With the removal of the fuel subsidy, we now have the Dangote Refinery coming on stream alongside other refineries. The Port Harcourt refinery, for instance, has been operational for over 110 days. These developments represent short-term gains, but more significant benefits will emerge as additional refineries begin operations.”

Omotayo also projected that petrol prices could drop to around ₦750 per litre before the end of the year, alongside an expected stabilization of the foreign exchange rate.

He added: “We anticipate petrol prices falling as low as ₦750 per litre before the year runs out. Additionally, we believe the exchange rate will drop to about 1.3 (assumed to mean ₦1,300 per dollar) as more refineries become operational. In the long run, Nigeria will transition into a net exporter of refined petroleum products.”

Acknowledging the economic hardship currently faced by Nigerians, Omotayo maintained that the country would reap long-term benefits from the policy shift.

He said: “The immediate benefits may seem minimal, but in the long run, we will recover from the sacrifices we are making today. Most of the gains will be realized in the medium to long term. In the meantime, the government has introduced palliative measures to cushion the effects on vulnerable citizens. We must all adjust our spending habits accordingly.”

While acknowledging that the transition has been challenging, Omotayo reiterated the Federal government’s commitment to ensuring that the policy ultimately fosters economic growth and stability that will ease Nigerians currently clamour.