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Petrol Price in Nigeria May rise to N340 per litre in 2022 – NNPC

The Group Managing Director of the Nigerian National Petroleum Company (NNPC), Malam Mele Kyari, has hinted that a liter of fuel may sell between N320 and N340 in 2022.

Kyari said this during the presentation of the World Bank Nigeria Development Update, November 2021 edition titled “Time for Business Unusual” in Abuja on Tuesday.

He said fuel subsidy removal would definitely be achieved in 2022.

Mele Kyari said that the law provides that by the end of February 2022, the nation should be out of the subsidy regime.

“There will be no provision for it legally in our system, but I am also sure you will appreciate that government has a bigger social responsibility to cater for the ordinary and therefore engage in a process that will ensure that we exit in the most subtle and easy manner,” he said.

He added that the product was not under any subsidy regime and therefore irrespective of where it was produced, would follow the global trend.

Nigeria’s Minister of Finance, Budget, and National Planning, Zainab Ahmed, had at the event said Nigeria will remove fuel subsidy by 2022 and substitute the subsidy with a N5000-a-month transportation grant to the poorest Nigerians.

She stated that the grant will be distributed to about 30 to 40 million Nigerians who make up the poorest population of the country.

She said: “The subsidies regime in the oil sector remains unsustainable and economically disingenuous.

“Ahead of the target date of mid-2022 for the complete elimination of fuel subsidies, we are working with our partners on measures to cushion the potential negative impact of the removal of the subsidies on the most vulnerable at the bottom 40% of the population.

“One of such measures would be to institute a monthly transport subsidy in the form of cash transfer of N5,000 to between 30 – 40 million deserving Nigerians.”