The World Bank recommends that the price of petrol should be set at N750 per litre
According to the World Bank's Lead Economist for Nigeria, Alex Sienaert, the suggested price for petrol is approximately N750 per litre, surpassing the current rate of N650 per litre paid by Nigerians. He made this declaration during the presentation of the Nigeria Development Update, December 2023 edition, titled 'Turning The Corner (from reforms and renewed hope, to results)' in Abuja on Wednesday.
Sienaert pointed out that the Federal Government might still be covering the cost of fuel subsidy, given that current fuel prices do not reflect the actual costs in the country.
He observed that, based on the current official exchange rate, the appropriate cost for fuel should be N750 per liter.
He stated, "It appears that petrol prices are not fully aligning with market conditions, indicating a partial return of the subsidy. If we calculate the cost-reflective retail PMS price based on the official FX rate and assuming importation is done at that rate, the liberalization is occurring with the parallel rates, the primary supplier, making the price even higher. These are rough estimates to provide an idea of what cost-reflective pricing would likely entail."
"We propose that the price of petrol should be approximately N750 per liter, surpassing the current N650 per liter paid by Nigerians," Sienaert added. He highlighted that the bank recommends the government to implement additional measures alongside its bold reforms to secure the benefits resulting from those decisions.
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