Fuel Subsidy Removal: Get ready to buy petrol at N600 per litre, stakeholders warn Nigerians

As the debate for and against fuel subsidy removal continues, experts in the sector have hinted that the pump price of petrol could go up as much as N600 per litre if the subsidy for the product is removed. For decades, the has subsidised fuel and fixed retail prices of petroleum products.

Despite rising global oil prices, Nigeria's fiscal deficit continued to widen in 2022, mainly due to the high costs it pays on fuel subsidy.

Interestingly, Nigeria's neighbour, Ghana, in March 2023, successfully removed fuel subsidy in the country. This follows 10 years of subsidy reforms and regulatory measures to ensure stability across its downstream sector.

Nigeria's fuel subsidy regime is marred by serious allegations of sharp practises and corruption that has drained Nigeria of trillions of nairas.

Last year, the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed hinted that the fuel subsidy regime would end before President Muhammadu Buhari rounds up his administration in May 2023.

At its last Monetary Policy Committee in March 2023, Mr Godwin Emefiele, the governor of Nigeria's Central Bank also confirmed that the Federal Government's plan for the removal of fuel subsidy was already in motion.

According to the NNPC, the landing cost for a litre of petrol is about N448. Reports also stated that Nigeria consumes about 68 billion litres of petrol daily and Nigeria spends about N400 billion every month on fuel subsidy.