The National Institute for Policy and Strategic Studies (NIPSS) has assured Nigerians 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 reduce significantly once more refineries come online.
“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 stated.
Omotayo projected that petrol prices could fall to around ₦750 per litre before the end of the year, provided there is 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.
Acknowledging the economic difficulties currently faced by Nigerians, Omotayo insisted that the ongoing reforms would yield long-term benefits.
“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 assured.
Defending the fuel subsidy removal, Omotayo argued that while the immediate impact is challenging, the long-term benefits outweigh the short-term 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 added.
Despite the present challenges, he maintained that Nigeria would eventually reap the rewards of its sacrifices, leading to a more stable and self-sufficient petroleum industry.
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