The National Institute for Policy and Strategic Studies (NIPSS) has assured that the price of Premium Motor Spirit (petrol) will decline as 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 fuel prices would fall once more refineries become operational.
“With the removal of the first subsidy, we have Dangote Refinery coming on. We have the other refineries. The refinery in Port Harcourt has worked continuously for 110 days if I’ve counted right! These are the short-term gains,” Omotayo said.
He projected that petrol prices could drop to around ₦750 per litre before the end of the year with a more stable exchange rate.
“We’re looking at it coming down as low as ₦750 before the end of the year. And of course, foreign exchange 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.
“We will become a net exporter in the long run,” he added.
Omotayo acknowledged the current economic hardships but insisted that the policy would benefit Nigerians in the long run.
“The gains at this time are very little, but in the long run, we will make up for whatever sacrifices we have made today as Nigerians,” he stated.
Defending the subsidy removal, he argued that while the immediate impact is challenging, the long-term benefits outweigh the present struggles.
“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 emphasized that despite the challenges, Nigeria would eventually recover from the sacrifices made today.
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