Petroleum marketers have issued a warning to Nigerians, indicating an impending increase in the pump price of petrol. They attribute this to the surge in crude oil costs and the depreciation of the naira against the US dollar, which collectively make up more than 80% of the petrol’s overall cost.
Brent crude, the global oil benchmark, recently reached $94 per barrel, marking its highest point in 2023. At the beginning of the year, oil prices were around $82 per barrel, dipped to $70 per barrel in June, but have since climbed to over $92 per barrel in recent weeks.
While the Federal Government and NNPC have asserted that petrol subsidies have been eliminated, oil marketers argue that the government is effectively implementing a quasi-subsidy. They point out that with the latest surge in crude oil prices, petrol costs should logically rise. If the government maintains the price at N617 per litre, it implies a quiet return of subsidies on PMS.
Chief Chinedu Ukadike, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, stated that the Group Chief Executive Officer of NNPC had previously noted that as long as the dollar’s value continues to increase, petroleum product prices cannot remain fixed. This rise in crude oil costs directly impacts petrol prices since PMS is derived from crude oil.
– By Osaiyekemwen Confidence
