N650 Per Litre Not Good, Petrol Should Sell For N750 Per Litre – World Bank Advises FG

Fuel subsidy is still on, petrol should sell at N750 per litre – World Bank advises Federal Government. 

NNPCL jerked up the pump price of PMS from N195 per litre to as high as N577 barely 24 hrs after subsidy removal in May.

Nigerian motorists and other users are currently paying about N650 for a litre of petrol in most cities. 

The World Bank has claimed that the Federal Government is still paying for fuel subsidy as the price of Premium Motor Spirit (petrol) should be around N750 per litre, which is more than the N650 per litre currently being paid by Nigerians.

The bank’s Lead Economist for Nigeria, Alex Sienaert, stated this in Abuja last week during his presentation of the Nigeria Development Update, December 2023 edition, titled ‘Turning The Corner (from reforms and renewed hope, to results).

Sienaert claimed that the current price of fuel in Nigeria was not cost-reflective, noting that based on the official exchange rate, fuel should cost N750/litre.

He said :

“It does seem like petrol prices are not fully adjusting to market conditions, so that hints at the partial return of the subsidy…assuming that importation is done at the official FX rate.

“We think the price of petrol should be around N750 per litre more than the N650 per litre currently paid by Nigerians,” Sienaert said.

Recall that the Nigerian National Petroleum Company Limited (NNPCL) jerked up the pump price of PMS (petrol) from N195 per litre to as high as N577, barely 24 hours after President Tinubu announced the subsidy removal in May.

Nigerian motorists and other users are currently paying about N650 for a litre of petrol in some cities, while in some other areas, it goes for higher than N670/litre.

• See Also : Brabus 900 Rocket Edition, “1 of 25” In The World Worth Over N1 Billion, Spotted In Lagos