The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has said that after the removal of subsidy has been effected by the Federal government, the pump price of premium motor spirit (PMS), also called petrol should be between N360 and N400 a litre.
The president of PENGASSAN, Festus Osifo, made this known while speaking to journalists on the sidelines of the association’s national executive council (NEC) meeting, in Abuja on Tuesday, March 28.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, had in November 2022, said the Federal Government will do away with petroleum subsidy by June 2023. She disclosed this during a press conference to mark the end of the 28th National Economic Summit.
Speaking on the matter on Tuesday, Osifo said the price of the product after subsidy is scrapped, will be determined by the official foreign exchange rate, sourced by Nigerian National Petroleum Company (NNPC) Limited for petrol importation.
“Today, the sole importer of PMS into Nigeria is the NNPC. The NNPC is using an exchange rate of the CBN which gives about N400 to N450 depending on the day and depending on the window that you are looking at. So, if you compute that into the model today, PMS should be selling for a region of about N360 to N400 [a litre]” Osifo said