President Bola Tinubu’s bold removal of Nigeria’s fuel subsidy ended a system long plagued by corruption and economic strain. This decision shifted fuel pricing to market forces, causing an initial surge in prices, now fluctuating but expected to stabilize.
How Fuel Prices Can Drop to N250 per Litre
To achieve this target, the government can:
1. Expand Alternative Fuels – Investing in Compressed Natural Gas (CNG) can provide a cheaper alternative at around N250 per litre.
2. Boost Local Refining – Supporting refineries like Dangote’s can cut import costs and reduce pump prices. Supporting local refineries and encouraging the establishment of the local refinery processing hub in the NigerDelta under the NNPCL supervision can cut import costs and reduce pump price.
3. Encourage Competition – Regulatory policies should prevent price-fixing by marketers and promote fair pricing.
Regulating Fuel Marketers’ Excesses
1. Stronger Oversight – Agencies like NMDPRA must ensure compliance through strict monitoring.
2. Lower Import Levies – Reducing taxes on fuel imports can ease costs.
3. Enhance Transparency – Public disclosure of pricing structures can prevent exploitation.
Conclusion
While subsidy removal presents challenges, strategic policies can lower fuel costs and protect consumers. With alternative energy investment, local refining, and stricter regulation, Nigeria can move towards sustainable and affordable fuel pricing.
Dr. Amiida
Headlinenews.news
