The National Institute for Policy and Strategic Studies (NIPSS) has projected a decline in the price of Premium Motor Spirit (PMS) as the Dangote Refinery and other local refineries commence full operations.
Speaking on Channels Television’s The Morning Brief on Tuesday, NIPSS Director-General Ayo Omotayo expressed optimism that petrol prices would decrease significantly with the activation of more refining capacities.
“With the removal of the fuel subsidy, we have Dangote Refinery coming on stream, alongside other refineries. The Port Harcourt Refinery, for instance, has operated continuously for 110 days if my count is accurate. These are some of the short-term gains,” Omotayo stated.
The NIPSS DG projected that petrol prices could fall to around ₦750 per litre before the end of the year, buoyed by a more stable exchange rate.
“We’re anticipating a drop as low as ₦750 before year-end. Additionally, the foreign exchange rate could stabilize around 1.3, with continued improvement as more refineries come on board,” he added.
Omotayo also noted that Nigeria is on track to become a net exporter of petroleum products in the long run, as increased refining capacity will enhance both local availability and economic stability.
While acknowledging the current economic hardships, Omotayo maintained that the long-term benefits of the policy would ultimately outweigh the challenges Nigerians are currently facing.
“The benefits at this stage are minimal, but over time, we will recoup the sacrifices made today. The government has also introduced palliatives to alleviate the burden on vulnerable citizens, encouraging everyone to adjust their spending patterns,” he emphasized.
The removal of the fuel subsidy has faced significant criticism due to its immediate impact on the cost of living. However, Omotayo remains confident that the strategic shift will pave the way for a more sustainable and economically viable future for Nigeria.
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