Rita Odafe
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PENGASSAN’s President, Festus Osifo, stated on Tuesday, March 28, that the pump price of premium motor spirit (PMS), otherwise known as petrol, should be between N360 and N400 a litre after the Federal Government removes subsidy. This was during an interview with journalists at the association’s national executive council (NEC) meeting in Abuja.
In November 2022, the Minister of Finance, Budget and National Planning, Zainab Ahmed, had declared that the Federal Government would be getting rid of petroleum subsidy by June 2023. This was announced at a press conference to conclude the 28th National Economic Summit.
Osifo explained that the cost of the product after subsidy is removed will be based on the official foreign exchange rate sourced by Nigerian National Petroleum Company (NNPC) Limited for petrol importation. He said, “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]”
