NIPS predicts the decline in gasoline prices when local refineries increase supply

The National Institute for Strategic Policies and Studies (NIPS) has project a significant reduction in the price of the Spirit of Premium Motor (PMS), which is commonly known as a local refinery, including dangote refineries, increasing production.

Director General of NIPS, Ayo Omotayo, made this statement on Tuesday during the appearance at Channels’s Television The Morning Brief, which stated that while the removal of fuel subsidies by the Administration of Tinubu Bola President at first triggered a sharp price increase, Relief was in the horizon.

“With the removal of fuel subsidies, we have upcoming dangote refineries. We have other refineries, including the Harcourt Port refinery, which has been operating continuously for 110 days. This is a short -term advantage,” Omotayo said.

He expressed optimism that, regardless of the current price surge – where gasoline is sold around ₦ 930 per liter, depending on the location – the price will decrease with an increase in domestic purification capacity.

“We are currently buying fuel at a higher price, but at the National Institute, our prediction is that if we continue on this trajectory, Fuel Prices will naturally drop. We anticipate it could fall to as low as ₦ 750 per little before the end of the year. A drop in foreign exchange rates to about 1.3 before the year ends, and as more of our refineries Become operational, Nigeria Will Ultimately Become a net exporter of refined petroleum products, “he said.

Omotayo acknowledged that the transition period had been challenging but stated that long -term benefits would be greater than short -term sacrifice.

“The advantage at this stage may seem minimal, but in the long run, Nigeria will reward rewards from the difficult choices made today,” he added.

The removal of President Tinubu’s fuel subsidy marks the end of the old government policy which maintains low artificial fuel prices through the exchange of expensive crude oil. The subsidized system spends national income, thinning foreign reserves, and contributes to debt installation. Tinubu, who has campaigned to end the exercise, stated that during his inauguration that “fuel subsidies were lost.”

Sudden changes cause immediate panic and a surge in fuel costs nationally, worsening economic difficulties for many Nigerians.

However, Omotayo defended the decision, stating that the transfer of subsidies was very important to prevent economic collapse.

“For us at the National Institute, it is a timely step and needs to be taken by the President, who has played an important role in saving Nigeria from financial destruction,” he said.

“Kami berada di ambang kehancuran karena pembayaran subsidi yang tidak berkelanjutan. Jumlahnya hanya tidak terbayangkan, dan dalam beberapa kasus, kami mensubsidi bahan bakar sejauh Burkina Faso dan Sierra Leone. Pemerintah yang bertujuan untuk kesuksesan jangka panjang ini harus membuat pilihan yang sulit. Di Nipss, kami memuji presiden karena mengambil tindakan yang bertujuan ini, bahkan untuk membuat tindakan yang dekisisi ini, bahkan untuk membuat tindakan yang dekisisi ini, bahkan untuk membuat tindakan yang dekisisi ini, bahkan To take this decisition action, even to take action that is aimed, even though they take the decree, even though they take decision actions, even though they take decisive actions, even though they take this aiming action, even though they carry out the aim of aiming, even though they took the aim of action, even though they carried out this aiming action, even though they took the aim of aiming, even though they took the actions that were aimed, even though they took the action.

Join the conversation

Opinion

Supports Nigeria’s ripples, resistant Journalism Solutions

A balanced and fearful journalism that is driven by data comes with enormous financial costs.

As a media platform, we ask for leadership accountability and will not trade the right to suppress freedom and freedom of speech for a piece of cake.

If you like what we do, and ready to uphold journalism solutions, friendly Nigerian ripples cause.

Your support will help ensure that residents and institutions continue to have free access to credible and reliable information for community development.

Donation now