The Lead Economist for Nigeria at the World Bank, Alex Sienaert, has suggested that the price of petrol in Nigeria should be increased by about N750 per litre from the current rate of N590 per litre. He made this statement while presenting the December 2023 edition of the Nigeria Development Update titled ‘Turning The Corner (from reforms and renewed hope, to results)‘ in Abuja on Wednesday.
According to Sienaert, the Federal Government might still be providing fuel subsidies because fuel prices in the country are not currently cost-reflective. He pointed out that, based on the official exchange rate today, fuel should be priced at N750 per litre.d at N750 per 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 if we estimate what is the cost reflective of retail PMS price of the would-be and assuming that importation is done at the official FX rate.
“Of course, the liberalisation 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,” Sienaert noted that the bank is recommending that the government take additional measures with its bold reforms to secure the benefits of having taken those decisions.
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