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Petrol Prices Set to Fall to ₦750/Litre by Year-End, NIPSS Predicts

The National Institute for Policy and Strategic Studies has guaranteed Nigerian citizens that the cost ofPremium Motor Spirit, commonly referred to as petrol,will decrease once the Dangote Refinery and other domestic refineries commence their operations.

Prior to removing the fuel subsidy, gasoline was priced at under ₦200 per liter.

Currently, prices have risen to approximately ₦930 per liter, varying by area.

Even with this rise, NIPSS Director-General Ayo Omotayo expressed optimism about potential future improvements during his appearance on Channels Television’s The Morning Brief on Tuesday.

Omotayo stated that once additional refineries become operational, fuel prices should start decreasing.

“With the elimination of the initial subsidy, we now see the Dangote Refinery becoming operational. Additionally, other refineries are also contributing. If my calculations are correct, the refinery in Port Harcourt has operated consistently for 110 days! These represent the immediate benefits,” he stated.

He forecasted that gasoline prices might fall to approximately ₦750 per litre by the year’s end and that the currency exchange rate would become stable.

We anticipate it decreasing to as low as ₦750 by the end of this year. Additionally, regarding foreign exchange, we expect it to fall to around 1.3 before the close of the year, and this trend will likely persist as more of our refineries become operational.

“He further stated, “In the long term, we will turn into a net exporter.””

He recognized that Nigerians are presently encountering challenges but maintained that the nation will reap advantages from the policy over time.

“The benefits at present are minimal, however, over time, we shall compensate for all the sacrifices we are making today as Nigerians,” he asserted.

In defense of eliminating the subsidy, Omotayo argued that although the effects might be challenging at present, the choice will ultimately prove advantageous for the nation.

Omotayo stated, “The majority of advantages will be seen over the medium and long terms. In the meantime, the government has implemented relief measures to assist those who are less fortunate. It’s important for everyone to adapt their expenditure.”

He admitted that the benefits may not be instantly apparent, yet stressed that “in the long term, we will recoup all the sacrifices we are making today as Nigerians.”

Provided by Syndigate Media Inc. (
Syndigate.info
).

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