Nigerians may soon see some relief at fuel stations as the price of petrol is expected to drop to ₦750 per litre before the end of the year. The National Institute for Policy and Strategic Studies (NIPSS) made this prediction on Tuesday, assuring citizens that local refineries will help bring prices down.
The Director-General of NIPSS, Ayo Omotayo, shared this optimistic outlook while speaking on Channels Television “The Morning Brief.” He explained that as more refineries, including Dangote Refinery and the Port Harcourt refinery, begin operations, petrol prices will decrease.
Refineries Will Ease Fuel Costs
Before the removal of the fuel subsidy, Nigerians bought petrol for less than ₦200 per litre. Now, prices have surged to around ₦930 per litre, depending on the location. However, Omotayo believes that the situation will improve soon.
“With the removal of the first subsidy, we have Dangote Refinery coming on. We have other refineries. The refinery in Port Harcourt has worked continuously for 110 days if I’ve counted right! These are the short-term gains,” he said.
He predicted that petrol prices would drop significantly in the coming months.
“We’re looking at it coming down as low as ₦750 before the end of the year. And of course, foreign exchange, we believe, will still drop to about 1.3 before the end of the year, and it is going to continue like that as more of our refineries come into place,” he added.
Omotayo further stated that with increased local production, Nigeria might soon stop depending on imported fuel.
“We will become a net exporter in the long run,” he assured.
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Short-Term Hardships, Long-Term Gains
He admitted that Nigerians are currently facing serious economic difficulties due to rising fuel prices and inflation but insisted that the policy would bring benefits over time.
“The gains at this time are very little, but then in the long run, we will make up for whatever sacrifices we have made today as Nigerians,” he stated.
Defending the decision to remove the subsidy, Omotayo said that while the impact is tough now, the move is necessary for Nigeria’s economic stability.
“Most of the benefits will come in the medium and long term. For now, the government has introduced palliatives to help ease the burden on the poor. We all need to adjust our spending,” he advised.