The average price of premium motor spirit, popularly known as petrol, has increased by a significant 152 percent since the removal of subsidy on the product in late May 2023 according to government data.
A National Bureau of Statistics (NBS) report says the average price per litre increased from N238.11 prior to the removal to N600.35 in July. On a month-on-month basis, it increased by 9.99 percent from N545.83 in June this year.
President Bola Ahmed Tinubu removed subsidy on the commodity to foster a competitive business environment and create a market driven by forces of demand and supply as payments were no longer sustainable.
Read also: African state-owned oil companies report $27.95bn earnings in 2023
Tinubu has also made available palliatives to cushion the effect on the citizens, but some stakeholders have called for a gradual approach to easing the removal of subsidies on the commodity.
Oil marketers have cited challenges faced by importers in accessing foreign exchange and the consequent impact on businesses. However, the Nigerian National Petroleum Company (NNPC) Limited has injected a $3 billion loan from AfreximBank into the economy.
State profile analysis of the price of petrol revealed that Borno State had the highest average retail price of the product at N657.27, Abia and Gombe States were next, with N643.13 and N642.22, respectively.
Conversely, Edo, Kwara and Benue States had the lowest average retail prices for petrol, at N530.00, N535.44 and N537.00, respectively.
“The North-East Zone had the highest average retail price of N630.13, while the North Central Zone had the lowest price of N551.58,” the NBS said.
