Tougher time awaits Nigerians following the recent advice by the World Bank urging the Federal Government to review upward the pump price of Premium Motor Spirit, PMS.
AAMAGAZINE recalls that the World Bank on Wednesday, December 13, claimed that the government may still be paying for fuel subsidy, which was removed by President Bola Tinubu on May 29, 2023.
The bank claimed that the current price of fuel in Nigeria was not cost-reflective, saying it has to be reviewed upward.
The World Bank said the price of petrol should be around N750 per litre, more than the N650 currently being paid by Nigerians.
The bank’s Lead Economist for Nigeria, Alex Sienaert, revealed this during his presentation of the Nigeria Development Update, December 2023 edition titled, ‘Turning The Corner’ (from reforms and renewed hope, to results) on Wednesday in Abuja.
During the event, Sienaert noted that based on the official exchange rate, fuel should cost N750/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…assuming that importation is done at the official FX rate.
“We think the price of petrol should be around N750 per litre more than the N650 per litre currently paid by Nigerians.”
AAMAGAZINE reports that the advice is coming amid terrible hardship bedevilling the country owing to the removal of fuel subsidy in May this year.
Recall that barely 24 hours after Tinubu announced the subsidy removal, the Nigerian National Petroleum Company Limited, NNPCL, jerked up the pump price of PMS from N195 per litre to as high as N577 in May.
Currently, Nigerians are paying N650 for a litre in some cities, while in some other areas, it goes for higher than N670/litre.
The development skyrocketed the price of essential goods and services across the country, especially staple food items, making life relatively unbearable for average Nigerians.
