ABUJA, Nigeria (VOICE OF NAIJA) – Nigerians have been told that buying fuel at N750 per litre is the ideal market price for the product.
According to the World Bank, the federal government of Nigeria may still be paying for petrol subsidy as fuel prices, and this is is currently not reflecting on the amount being paid for the product.
Daily Trust reports that Alex Sienaert, the World Bank’s lead economist for Nigeria, confirmed the continuous payment of petrol subsidy by the government.
He made the confirmation during his presentation of the Nigeria Development Update (NDU), December 2023 Edition in Abuja on Wednesday, 13 December, 2023.
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“It does seem like petrol prices are not fully adjusting to market conditions. So, that hints at the partial return of the subsidy if we estimate what is the cost reflective of the retail PMS price of the would-be and assume that importation is done at the official FX rate.
“Of course, the liberalization is happening with the parallel rates, which is the main supplier, the price would be even higher. These are just estimates to give you a sense of what cost-reflective pricing most likely looks like.
“We think the price of petrol should be around N750 per litre more than the N650 per litre currently paid by Nigerians,” he was quoted to have said.
Nigerians will be extremely irked by this new development seeing that even with the current price of petrol, a lot of people have their vehicles parked and now prefer public transport for commuting.
Also, the price of fuel has led to massive inflation in the country, with the prices of food items, among other commodities, skyrocketing immensely.