Nigeria rules out further hike in petrol price

Nigeria's President, Bola Tinubu has ruled out further increase in petrol prices but reiterates that there's no going back on petrol subsidy removal. Owing to the fundamentals in deregulation, how can the government achieve price stability of petrol? Paul Alaje, Senior Economist at SPM Professionals, joins CNBC Africa for this discussion.

Wed, 16 Aug 2023 12:15:50 GMT

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AI Generated Summary

The issue of petrol price stability in Nigeria has become increasingly complex following the removal of subsidies, with President Bola Tinubu ruling out further price hikes.
Global oil price fluctuations and currency devaluation have compounded the challenges, placing immense pressure on the government to intervene and prevent a potential crisis in the petrol market.
The resurgence of fuel queues and fears of price increases have underscored the need for comprehensive reforms and 'thorough house cleaning' in the Central Bank and the petroleum sector to restore stability and address inefficiencies.

Nigeria is grappling with the challenge of achieving price stability in the petrol market following the removal of subsidies, leaving the government and consumers in a difficult position. President Bola Tinubu has unequivocally ruled out any further increase in petrol prices but stands firm on the decision to eliminate subsidies. In a recent interview, Senior Economist Paul Alaje from SPM Professionals shed light on the complexities of the current situation and the potential ramifications for the Nigerian economy. Alaje highlighted the impact of global oil prices, currency devaluation, and the scarcity of foreign exchange on the local petrol market. He emphasized the need for government intervention to prevent a potential crisis, as fuel marketers struggle to access forex for imports. The resurgence of fuel queues and the specter of price hikes have raised concerns among consumers and industry observers. Amid calls for a 'thorough house cleaning' in the Central Bank and the petroleum sector, the government faces mounting pressure to address inefficiencies and restore stability. As Nigeria navigates the path to petrol price stability, uncertainties loom large, underscoring the need for proactive measures and sustainable solutions.