The Nigerian National Petroleum Company Limited (NNPC) has adjusted the price of Premium Motor Spirit (PMS) to as high as N537 per litre in Abuja. This is coming after the subsidy removal was announced by president Bola Tinubu on Monday.

The new price is already being reflected at some NNPC filling stations in Abuja. For example, the NNPC Mega Station, Wuse Zone 6, is selling petrol at N537 per litre.

The increase in the price of petrol is likely to have a significant impact on the cost of living in Nigeria. It is expected to lead to higher transportation costs, which will in turn push up the prices of goods and services.

The government has said that the subsidy removal is necessary to save the country money. However, many Nigerians are concerned about the impact that the higher prices will have on their lives.

It remains to be seen how the government will address the concerns of Nigerians. However, it is clear that the subsidy removal is a major policy change that will have a significant impact on the country.

Impact of the subsidy removal

The removal of the subsidy on petrol is likely to have a number of negative impacts on the Nigerian economy. These include:

Increased inflation: The higher price of petrol is likely to lead to increased inflation, as businesses pass on the higher costs to consumers. This will make it more difficult for people to afford basic necessities.
Reduced economic growth: The higher cost of transportation is likely to reduce economic growth, as businesses will be less likely to invest and expand. This will lead to job losses and a decline in living standards.
Increased poverty: The higher cost of living is likely to push more people into poverty, as they will be unable to afford basic necessities. This could lead to social unrest and instability.
Government’s response

The government has said that it will use the money saved from the subsidy removal to fund social programs and infrastructure projects. However, it is unclear whether these measures will be enough to offset the negative impacts of the subsidy removal.

The government also needs to ensure that the removal of the subsidy is done in a fair and transparent manner. This means that all Nigerians should have access to petrol at the new price, regardless of where they live.

The subsidy removal is a major policy change that will have a significant impact on the Nigerian economy. The government needs to carefully manage the process to minimize the negative impacts and maximize the benefits.