By Our Correspondent
Former Kogi West Senator, Dino Melaye, has said former Vice-President Atiku Abubakar’s proposed plan to restore petrol subsidy could significantly reduce the price of Premium Motor Spirit (PMS), popularly known as petrol, to between ₦400 and ₦500 per litre if implemented.
Melaye made the claim while discussing Atiku’s economic proposals, arguing that a return to subsidy would provide immediate relief to Nigerians who have continued to grapple with high fuel prices and the rising cost of transportation.
According to the former senator, the proposed policy could bring the pump price of petrol substantially below the current market level. He maintained that the reduction would have effects beyond the filling station, particularly on transportation and the cost of goods and services.
Melaye argued that the high cost of petrol has contributed significantly to the economic difficulties facing households and businesses across the country. He said a reduction in fuel prices could help ease the financial pressure on ordinary Nigerians.
He further suggested that cheaper petrol could translate into lower transportation costs, as commercial transport operators and logistics companies spend a significant portion of their operating expenses on fuel.
The former senator also linked the cost of petrol to the prices of food and other essential commodities, noting that higher transportation expenses often increase the cost of moving agricultural produce and manufactured goods from one location to another.
Melaye’s position is that if petrol could be sold at between ₦400 and ₦500 per litre, transportation costs would reduce and this could have a ripple effect on the prices of goods and services.
Atiku, who served as Nigeria’s vice-president from 1999 to 2007, has previously spoken in favour of reviewing the country’s approach to petrol pricing and subsidy, particularly where such measures could provide relief to citizens while addressing broader economic challenges.
The subsidy debate has remained one of the most contentious economic issues in Nigeria, especially since President Bola Tinubu announced the removal of the petrol subsidy in May 2023.
The removal triggered a sharp increase in petrol prices and was followed by higher transportation costs and significant increases in the prices of many goods and services. The Federal Government has maintained that subsidy removal was necessary to reduce the financial burden on the government and redirect public resources to other areas.
Supporters of subsidy removal have argued that the previous system placed a heavy burden on government finances and created opportunities for inefficiency and abuse. Critics, however, have maintained that the policy has imposed severe economic hardship on households and businesses.
Melaye’s latest comments have therefore renewed attention on the question of whether petrol subsidies could provide short-term relief to Nigerians while also raising questions about the long-term cost to government finances.
However, the ₦400–₦500 per litre figure remains a projection attributed to Melaye rather than an established price that would automatically result from a subsidy policy. The actual pump price under any future subsidy arrangement would depend on factors including crude oil prices, the naira exchange rate, refining costs, domestic fuel production and the structure and size of any subsidy introduced.
The debate is expected to remain prominent as political parties and aspirants continue to present their economic programmes ahead of Nigeria’s 2027 general elections.
For millions of Nigerians, however, the central issue remains whether any proposed policy can bring down the cost of petrol and, in turn, reduce the heavy pressure that high transportation and living costs have placed on households.
If implemented, Atiku’s proposed approach would represent a significant shift from the current petrol pricing framework. Whether it could actually deliver a pump price of ₦400–₦500 per litre, while remaining financially sustainable for the government, would ultimately depend on the details of the policy and prevailing economic conditions.
For now, Melaye’s claim has added fresh fuel to Nigeria’s ongoing debate over petrol subsidy, fuel pricing and possible solutions to the country’s cost-of-living crisis.
