Abuja, Nigeria – The National Bureau of Statistics (NBS) has released a report indicating a substantial increase in petrol prices following the removal of subsidies by President Bola Tinubu on May 29, 2023. The report, titled “Premium Motor Spirit (Petrol) Price Watch (May 2024),” reveals that the average retail price of petrol in May 2024 was ₦769.62 per litre, marking a 223.21% increase from May 2023 (₦238.11) and a 9.75% rise from April 2024 (₦701.24).
State and Zonal Price Variations
- Jigawa State: Recorded the highest petrol price at ₦937.50 per litre.
- Ondo and Benue States: Followed with average prices of ₦882.67 and ₦882.22, respectively.
- Lagos, Niger, and Kwara States: Reported the lowest average retail prices, at ₦636.80, ₦642.16, and ₦645.15, respectively.
Zonal Analysis
- North-West Zone: Had the highest average retail price at ₦845.26.
- North Central Zone: Reported the lowest average price at ₦695.04.
Economic Impact
The removal of petrol subsidies has led to a sharp increase in inflation, with the NBS reporting an inflation rate of 33.95% as of May 2024. Food inflation has also surged to 40%, significantly impacting the cost of living for Nigerians.
NNPCL Price Announcement
Despite the rising prices, the Nigerian National Petroleum Company Limited (NNPCL) has stated that it will maintain its current prices at its retail outlets nationwide, selling petrol at around ₦568 per litre. This is still a considerable increase from the ₦238 per litre recorded in May 2023.
Public Reaction and Future Outlook
The continuous rise in petrol prices has sparked concerns among consumers and economists about the long-term effects on the Nigerian economy. The government’s decision to remove the subsidy was aimed at reducing fiscal burdens, but it has also led to increased financial strain on households and businesses.
The NBS report underscores the urgent need for measures to mitigate the impact of rising fuel costs on the population. As petrol prices approach ₦1,000 per litre in the Northern region, it is crucial for policymakers to address the inflationary pressures and explore sustainable solutions to stabilize the economy.
