Fuel marketers across the country, say a further increase in global crude oil prices would push the pump price of petrol higher. Petrol prices have i
Fuel marketers across the country, say a further increase in global crude oil prices would push the pump price of petrol higher.
Petrol prices have increased for three straight months, rising from N121.50–N123.50 per litre in June to N140.80-N143.80 in July, N148-N150 in August and N158-N162 in September.
The Petroleum Products Marketing Company, a subsidiary of the Nigerian National Petroleum Corporation had, on Wednesday, increased the ex-depot price of Premium Motor Spirit (petrol) to N151.56 per litre from N138.62 per litre but later reduced it to N147.67. The ex-depot price is the price at which the product is sold to marketers at the depots.
When the collapse of global crude oil prices triggered the reduction of the pump price of petrol from N145 per litre to N125 in March, the Petroleum Products Pricing Regulatory Agency said it would advise the NNPC and oil marketing companies on the monthly “guiding retail price” at which the product shall be sold across the country.
The National Operations Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, said that the increase in petrol pump prices was a reflection of the global oil prices.
“In July, the crude oil price was around $43 per barrel. But rose to about $44-$45 in August. Last Monday, it increased to $46. If the crude oil price falls to $40, petrol prices will come down. But if it goes up to $50, we should be expecting petrol price to rise to about N163 per litre if the exchange rate remains the same,” he said.
Osatuyi stressed the need for government to create a level playing field by allowing marketers to also have access to foreign exchange at the official rate like the NNPC to enable them to import products.
The Chairman, Major Oil Marketers Association of Nigeria, Mr Adetunji Oyebanji, said earlier on Thursday that pump prices would have to be adjusted to reflect realities of the increase of ex-depot prices by PPMC.
