Fuel Price Reduces to ₦750 as Local Refineries Boost Supply

Amid Nigeria’s ongoing fuel price surge, the National Institute for Policy and Strategic Studies (NIPSS) has reassured citizens that relief is on the horizon as domestic refineries ramp up production.

The institute’s Director-General, Ayo Omotayo, expressed optimism that petrol prices will decline to approximately ₦750 per litre before the end of the year, attributing this anticipated drop to increased local refining capacity.

Speaking on Channels Television’s The Morning Brief on Tuesday, Omotayo highlighted the positive impact of Dangote Refinery’s operations and the gradual revival of government-owned refineries.

“With the removal of the fuel subsidy, we now have Dangote Refinery coming on board, alongside other refineries. The Port Harcourt Refinery, for instance, has been running continuously for over 110 days,”

he noted, describing these developments as early signs of progress.

Before the subsidy was removed, petrol was sold for under ₦200 per litre. However, with the shift to deregulated pricing, fuel costs have skyrocketed to around ₦930 per litre in various parts of the country.

Despite the current hardship, Omotayo remains confident that as more refining capacity comes online, fuel price will ease.

He also forecasted a strengthening of the naira, predicting that the foreign exchange rate could stabilize at approximately ₦1,300 to the dollar by year-end.

“We are moving towards becoming a net exporter of refined petroleum products, which will eventually stabilize the economy,” he added.

Acknowledging the present economic difficulties, Omotayo assured Nigerians that the long-term benefits of subsidy removal would outweigh the initial sacrifices.

“The immediate gains may be small, but in the long run, the country will recover and grow stronger,” he emphasized.

While defending the government’s decision to remove the subsidy, he noted that short-term measures, such as palliatives for low-income earners, have been introduced to cushion the impact.

“It is a tough adjustment period, but as a nation, we must recalibrate our spending habits to align with new realities,” Omotayo advised.

As Nigeria navigates its path to energy self-sufficiency, stakeholders are hopeful that increased local refining will not only reduce fuel prices but also lessen the country’s dependence on costly imports, paving the way for long-term economic stability.