NIPSS Predicts Petrol Price Drop to ₦750 per Litre Before Year-End Amid Refinery Operations

 The National Institute for Policy and Strategic Studies (NIPSS) has projected a significant reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, by the end of the year, citing increased domestic refining capacity as a major factor.

According to NIPSS, petrol could be sold for as low as ₦750 per litre once refineries, including the much-anticipated Dangote Refinery, commence full-scale operations. This marks a potential relief for millions of Nigerians currently grappling with high fuel prices.

Following the removal of fuel subsidies by President Bola Tinubu’s administration in May 2023, petrol prices surged from under ₦200 per litre to as high as ₦930 in some regions. The sharp increase in costs has significantly affected transportation, food prices, and overall living expenses.

Speaking on the expected price drop, NIPSS officials stated that reducing reliance on fuel imports would stabilize the market. “The commencement of operations at local refineries will significantly cut down import costs and reduce foreign exchange pressures, leading to a natural decline in fuel prices,” an official explained.

Despite this optimistic projection, economic analysts have warned that other factors, such as inflation and forex volatility, could impact price reductions. The government has been urged to put in place policies that will ensure fuel affordability even after refineries become fully operational.

If the predictions hold true, consumers may experience some financial relief before the year ends, with potential long-term benefits for Nigeria’s economy.