World Bank Urges Nigeria to Adjust Petrol Price to N750/Litre, Citing Non-Cost Reflectivity

In a recent development, the World Bank has asserted that the Nigerian government may still be shouldering the burden of fuel subsidies, as current petrol prices in the country do not adequately reflect the true cost. According to the World Bank’s Lead Economist for Nigeria, Alex Sienaert, the prevailing price of petrol, at N650 per litre, falls short of the recommended cost of N750 per litre.

This revelation was made during the presentation of the Nigeria Development Update for December 2023, titled ‘Turning The Corner (from reforms and renewed hope, to results),’ which took place on Wednesday in Abuja. Sienaert emphasized that the disparity between the current retail price and the cost-reflective price indicates a potential partial return to fuel subsidies.

During the hybrid event, Sienaert explained, “It does seem like petrol prices are not fully adjusting to market conditions, so that hints at the partial return of the subsidy if we estimate what is the cost reflective of retail PMS price of the would-be and assuming that importation is done at the official FX rate.”

READ ALSO: Black Market Exchange Rate for Dollar to Naira Today 13th December 2023

He further highlighted that, based on the official exchange rate, the cost of fuel should be N750 per litre. However, he acknowledged the ongoing liberalization, which includes parallel exchange rates, indicating that the actual price could be even higher.

“We think the price of petrol should be around N750 per litre more than the N650 per litre currently paid by Nigerians,” Sienaert asserted.

This assertion by the World Bank raises questions about the sustainability of current fuel pricing policies and the potential economic implications for the country. As Nigeria continues to navigate economic reforms and policy adjustments, the petrol pricing issue remains a critical aspect that requires careful consideration and action from the government.

https://t.me/grandcombat_bot/start?startapp=lYRFU96I5w

Follow us on Google News for Latest Headlines

https://whatsapp.com/channel/0029VaELqhlHVvTXjDnUf80h

https://chat.whatsapp.com/G6Lo3ss6WKLCOqBphZwQGk

https://facebook.com/allmedia24news

https://www.twitter.com/allmedia24news
Telegram Group

https://t.me/allmedia24

https://www.threads.net/@allmedia24news

RECEIVE NEWS FROM EMAIL

Email address:

Leave this field empty if you're human: