Subsidy Return Could Push Petrol to N2,000–N3,000, FG Warns

The Federal Government has warned that a return to petrol subsidy could push the price of Premium Motor Spirit (PMS) to between N2,000 and N3,000 per litre.

The warning comes amid renewed calls by some opposition politicians for the reintroduction of fuel subsidy as petrol prices continue to place pressure on households and businesses.

The government has maintained that the removal of subsidy was necessary to reduce the financial burden on the country and redirect public resources towards other areas of development.

President Bola Tinubu, in his Independence Day address, also warned against returning to subsidy, saying the country should not reverse the reforms undertaken by his administration.

The President said the government’s economic reforms had been difficult but argued that they were intended to address longstanding weaknesses in the economy and create the foundation for broader prosperity.

The Federal Government has also pointed to the fiscal savings generated since subsidy removal, while maintaining that returning to the former system would impose a substantial financial burden on the country.

The warning comes as petrol prices have risen significantly, with prices approaching N1,500 per litre in some parts of the country following increases in international crude oil prices.

Supporters of subsidy restoration, however, have argued that government intervention is necessary to cushion Nigerians from the immediate effects of high fuel and transportation costs.

The debate has intensified ahead of the 2027 general elections, with petrol pricing and the cost of living emerging as major issues in political campaigns and policy discussions.

The Federal Government has continued to favour targeted interventions rather than a return to universal petrol subsidy, while opposition figures advocating alternative approaches have argued that cheaper fuel is necessary to reduce transportation and living costs.

The government’s latest warning therefore adds to the ongoing debate over whether subsidy removal should remain a central component of Nigeria’s economic policy or whether alternative measures should be introduced to provide relief to consumers.