The National Institute for Policy and Strategic Studies (NIPSS) has assured Nigerians that fuel prices are set to decline once Dangote Refinery and other local refineries are fully operational. Before the removal of the fuel subsidy, petrol was priced below ₦200 per litre.
However, with the subsidy removal, the price has surged to approximately ₦930 per litre, varying by location.
Ayo Omotayo, Director-General of NIPSS, expressed hope for a reduction in fuel costs during an appearance on Channels Television’s The Morning Brief on Tuesday. He explained that as more refineries come into operation, fuel prices should begin to drop.
“With the subsidy removal, we now have the Dangote Refinery coming online, along with other refineries, including the Port Harcourt refinery, which has been operational for 110 days,” he stated.
Omotayo forecasted that petrol prices could fall to ₦750 per litre by the end of the year, also predicting that the exchange rate would stabilize.
“We anticipate that prices will decrease to around ₦750, and we expect the exchange rate to improve to about 1.3 before year-end. As additional refineries come online, Nigeria will eventually become a net exporter of fuel,” he said.
Acknowledging the current hardships Nigerians are facing, Omotayo emphasized that the country would see long-term benefits from the policy. “The immediate benefits might be limited, but in the long run, the sacrifices made today will pay off,” he added.
Defending the subsidy removal, Omotayo noted that while the short-term impact is challenging, the long-term advantages will outweigh the difficulties.
“The government has introduced palliatives to alleviate the burden on the poor, and we must all adjust our spending accordingly,” he said.
Omotayo concluded by reassuring Nigerians that, while the benefits might not be instantly visible, the sacrifices made today would ultimately result in a stronger and more prosperous nation.
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