The World Bank Says Petrol Should Cost N750 per Litre
The World Bank recently stated that the price of petrol in Nigeria should be N750 per litre, which is higher than the current price of N650 per litre. This means that the government may still be paying for fuel subsidy because the current prices do not reflect the actual cost.
The World Bank’s Findings
Alex Sienaert, the Lead Economist for Nigeria at the World Bank, shared this information during a presentation in Abuja. He explained that based on the official exchange rate, petrol should cost N750 per litre. However, the current prices are not fully adjusting to market conditions, indicating the partial return of the subsidy.
Cost-Reflective Pricing
Sienaert mentioned that if the retail price of petrol was cost-reflective and importation was done at the official exchange rate, the price would be even higher. He estimated that the price of petrol should be around N750 per litre, which is more than what Nigerians are currently paying.
Recommendations
The World Bank is recommending that the government takes additional measures to secure the benefits of its bold reforms. These measures will help ensure that the decisions made by the government result in positive outcomes for the country.
Leave a Reply