According to NIPSS, the downward trend in fuel prices is expected to be driven by a combination of factors, including the deregulation of the downstream sector, increased refining capacity, improved crude oil production, and the removal of subsidies on petroleum products.
The predicted price drop is a welcome development for Nigerians, who have been bearing the brunt of high fuel prices for a long time. The current fuel price has been a major concern for many.
The NIPSS, a renowned think-tank, made the prediction in a report released on Tuesday, citing data and trends in the oil and gas industry. The report noted that the deregulation of the downstream sector, which allows market forces to determine prices, will lead to increased competition among oil marketers, resulting in lower prices for consumers.
“The removal of subsidies on petroleum products will also allow the market to dictate prices, leading to a more competitive pricing regime,” the report stated. “Additionally, the rehabilitation of Nigeria’s refineries and the construction of new ones will increase the country’s refining capacity, reducing reliance on imported fuel and putting downward pressure on prices.”
The predicted price drop is expected to have a positive impact on the economy, as lower fuel prices will lead to reduced transportation costs, lower production costs for businesses, and increased disposable income for consumers.
The Nigerian National Petroleum Corporation (NNPC) expressed optimism that the predicted price drop will become a reality. “We are working tirelessly to ensure that the country’s refineries are rehabilitated and that new ones are constructed to increase our refining capacity,” said a spokesperson for the NNPC. “We are confident that this will lead to lower fuel prices and a more stable supply of petroleum products.”
The news has been welcomed by Nigerians, who have been calling for a reduction in fuel prices for a long time.
“This is a welcome development,” said Lagos-based motorist, Mr. John Okoro. “High fuel prices have been a major concern for me and many other Nigerians. I hope that the predicted price drop becomes a reality soon.”
As the year draws to a close, Nigerians will be eagerly waiting to see if the predicted price drop materializes. If it does, it will be a major relief for many, and a significant boost to the economy.
