The Premium Motor Spirit (PMS), generally known as gasoline, should cost between N360 and N400 per liter at the pump if the Federal government removes the subsidy, according to the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
The president of PENGASSAN, Festus Osifo, made this known while speaking to journalists on the sidelines of the association’s national executive council (NEC) meeting, in Abuja on Tuesday, March 28.
The Federal Government will end petroleum subsidies by June 2023, according to Zainab Ahmed, Minister of Finance, Budget, and National Planning, who made the announcement in November 2022. She revealed this at a press conference held to commemorate the 28th National Economic Summit’s conclusion.
Speaking on the subject on Tuesday, Osifo stated that after the subsidy is eliminated, the product’s price will be set by the official foreign exchange rate that the Nigerian National Petroleum Corporation (NNPC) Limited sources for the importation of gasoline.
“Today, the sole importer of PMS into Nigeria is the NNPC. The NNPC is using an exchange rate of the CBN which gives about N400 to N450 depending on the day and depending on the window that you are looking at. So, if you compute that into the model today, PMS should be selling for a region of about N360 to N400 [a litre]” Osifo said
