Petrol Prices to Drop Below ₦750 as Dangote Refinery Boosts Supply – NIPSS

The National Institute for Policy and Strategic Studies (NIPSS) has assured Nigerians that petrol prices will decline significantly as more local refineries, including the Dangote Refinery, become operational.

Speaking on Channels Television’s The Morning Brief on Tuesday, the Director-General of NIPSS, Ayo Omotayo, expressed optimism that the removal of fuel subsidies by President Bola Tinubu’s administration, while initially painful, would yield long-term benefits.

“With the removal of the subsidy, we have Dangote Refinery coming on board. The Port Harcourt refinery has also operated continuously for 110 days. These are the short-term gains,” Omotayo stated.

Petrol Prices May Drop to ₦750 Per Litre
He projected that petrol prices, which currently hover around ₦930 per litre, could drop to approximately ₦750 per litre before the end of the year as local refining capacity improves.

“We’re buying fuel at a higher price now, but if we continue with what we are currently doing, prices will drop. More refineries will come on stream, and we will eventually become a net exporter of fuel,” Omotayo added.

Foreign Exchange Stability Expected
In addition to a drop in fuel prices, Omotayo predicted that the naira would strengthen against the dollar, potentially reaching an exchange rate of ₦1,300 per dollar by year-end.

He acknowledged that the current economic difficulties were a result of necessary policy adjustments but insisted that these sacrifices would ultimately lead to economic stability and growth.

Fuel Subsidy Removal: A Necessary Decision
President Tinubu’s decision to remove fuel subsidies ended a long-standing system where the government subsidized petrol prices by swapping crude oil for refined fuel. While this policy kept fuel prices low, it drained public funds, depleted foreign exchange reserves, and contributed to rising national debt.

For years, subsidized Nigerian petrol was smuggled into neighboring countries such as Burkina Faso and Sierra Leone, worsening the financial burden on the government.

Tough Decisions for Economic Survival
Omotayo defended the subsidy removal, arguing that Nigeria was on the brink of economic collapse due to unsustainable subsidy payments.

“For us at the National Institute, the subsidy removal was a timely and necessary step that has helped save Nigeria,” he said.

While acknowledging that the policy was unpopular, he emphasized that tough decisions were required to ensure economic recovery.

“The Nigerian public may feel the decision was harsh and sudden, but if we had delayed further, the consequences would have been even worse,” he concluded.