The Nigerian government has officially removed the subsidy on premium motor spirit (PMS), commonly known as petrol.
Checks by News About Nigeria reveal that the Nigeria National Petroleum Company (NNPC) Limited has adjusted its pump prices accordingly, with petrol now being sold at N537 per litre in Abuja, N488 per litre in Lagos State, N511 per litre in Port Harcourt, and N537 per litre in Plateau State.
The NNPC’s pricing template for petrol has been confirmed by reliable sources within the company.
This move by the national oil company aims to provide transparency and clarity regarding fuel prices, following the elimination of the controversial fuel subsidy, which previously cost the government nearly $10 billion annually.
As the sole supplier of petrol in Nigeria, it is expected that other fuel marketers will align their prices with NNPC’s new rates.
Notably, the different pump prices set by NNPC for various cities indicate that not only has the subsidy been removed, but also the price equalization mechanism that previously enforced a uniform official price for petrol across the country.
The foreign exchange (FX) exchange rate utilized by NNPC to determine its pump price remains unclear, although it is speculated to be around N600/$.
Overall, this development signifies a significant shift in Nigeria’s fuel pricing landscape.
The removal of the fuel subsidy is expected to have far-reaching effects on the economy, as it eliminates a substantial financial burden on the government.
However, it also poses challenges for consumers who may face higher petrol prices.
The decision by NNPC to adjust its pump prices reflects the new market dynamics and highlights the end of a system that artificially maintained uniform petrol prices nationwide.
As the nation adjusts to this new reality, stakeholders in the oil and gas industry will closely monitor the implications of the subsidy removal and its impact on various sectors.
It remains to be seen how the Nigerian public will respond to the increased fuel prices and whether this change will lead to a more efficient and sustainable petroleum sector.
The government’s decision to remove the subsidy underscores its commitment to addressing economic challenges and reforming the energy sector in Nigeria.