The price of Premium Motor Spirit commonly called “petrol,” has risen by 81% in the past three years. This analysis was conducted by the National Bureau of Statistics. Also, findings show that the Federal government has paid N5.83 trillion in subsidies on petroleum products.
Further data from the NBS showed that between February 2020 and February 2023, the price of fuel rose from N145.41/litre to N263.76/litre. As of February 2023, consumers paid N263.76 for petrol. When compared to the value recorded in February 2022 (N 170.42), this indicates a 54.76 percent increase.
Likewise, in comparison with the previous month (January 2023), the average retail price increased by 2.58 percent from N257.12. Moreover, in 2020, the average price paid by consumers for petrol increased by 0.08 percent year-on-year. It also increased month-on-month by 0.03 percent to N145.41 in February 2020 from N145.37 in January 2020, according to the NBS.At the time, the Federal Government had paid about N134bn as fuel subsidy payments.
Specifically, in the last three years, the petrol subsidy has gone from N134bn in 2020 to N1.43tn in 2021. It rose further to N4.39tn in 2022 and a projected N3.63tn by June 2023. This leads to a total of N5.83 trillion in subsidy payments, excluding the figures for 2023.Also, the Federal Government has plans to remove fuel subsidy with a plan to deregulate the oil market by June this year.
The Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed, said last week that Nigeria had borrowed $800 million from the World Bank. However, it was for the purpose of providing palliatives for Nigerians ahead of fuel subsidy removal. There are fears that the removal of petrol subsidies might be drastic for the populace. The countdown to the June 2023 date for subsidy removal inches closer.