Fuel Prices might Increase by 250% to N8tn when Subsidies are Removed.

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According to the latest intelligence and industry data, when the federal government stops subsidizing PMS in June, between July and December 2023, gasoline consumers will pay around N$ 8.4 trillion. This represents about a 250% increase over its N2.4 trillion that a PMS consumer would spend in this period if the government chose to maintain the subsidy scheme.

Oil marketers said average gasoline costs could rise to about N700/liter from July if fuel subsidies end in June, as the federal government predicts. “The subsidies controversy About two weeks ago, Abuja’s National Economic Council announced his six-year plan to eliminate oil subsidies pending a review of existing plans to provide palliative care to Nigerians. I requested an extension of the month’s deadline.

However, it was reported last week that the federal government is pushing ahead with planned fuel subsidy cuts through the end of June, contrary to reports that the end date for subsidy cuts has been pushed back. As a result, Nigerians will receive about N$6 trillion in additional savings over the six months from July to December 2023 if gasoline prices reach an average of N700/l after commodity subsidies end in June.


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