The recommended price for gasoline is N750liter .uk 1

The recommended price for gasoline is N750/liter

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According to the World Bank, the government might still be footing the bill for fuel subsidies as gas prices aren’t reflecting production costs at the moment. Compared to the present price of N650/liter, it suggested that fuel should cost roughly N750/liter more.

As Alex Sienaert, the bank’s lead economist for Nigeria, stated during his presentation of the December 2023 edition of the Nigeria Development Update titled “Turning the Corner (from reforms and renewed hope to results)” in Abuja, this was revealed during the event. He mentioned that, according to today’s official exchange rate, gasoline should cost N750/liter during the hybrid event.

“I said,” he repeated,

Suppose we estimate the cost reflecting the retail PMS price of the would-be, and assume that importation is done at the official FX rate. In that case, it seems that petrol prices are not fully responding to market conditions, which suggests that the subsidy may be partially returned.

Liberalization is taking place with parallel rates, the primary provider; hence, prices would be much higher.

These are merely ballpark figures to help you see what cost-reflective pricing would look like. We believe that Nigerians should pay about N750 per liter more for petrol than the N650 per liter that is now being paid.

He emphasized that the bank is advising it to take further steps to ensure the government reaps the advantages of its daring changes.

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