Evaluating the Role of Deregulation in Petrol Pricing in Nigeria

    Research and Insights | Sep 17, 2024    
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Nigeria’s petrol pricing system has long been a topic of public discourse, shaped by government intervention through fuel subsidies, marketers’ price wittiness, and in some cases policy arbitrariness. For many decades, the government has regulated petrol prices through subsidy initiatives to keep it affordable for its citizens, often at the cost of significant fiscal strain on the national budget. As at 2023, fuel subsidy has gulped a whopping #6trillion between 2022 & 2023, according to the Accelerated Stabilization and Advancement Plan (ASAP) report presented by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edu, to the President in June 2024. According to the report, “At current exchange rates, expenditure on fuel subsidy is projected to reach N5.4 trillion by the end of 2024. This compares unfavourably with N3.6 trillion in 2023 and N2.0 trillion in 2022,”      

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