Petrol marketer warns further hike in fuel price as crude oil hit $94

Petroleum marketers have told various Nigerians to expect further hike in the pump price of petrol in coming days.

The oil marketers explained that the development is due to the rise in the cost of crude oil, coupled with the depreciation of the naira against the US dollar, both of which account for over 80 per cent of the cost of PMS.

Brent crude, the global benchmark for oil, rose to $94/barrel on Sunday, 17th of September, 2023, the highest figure in 2023.

Oil had started the year at about $82/barrel, dipped to $70/barrel in June, but traded above $92/barrel in the past few weeks.

Although the Nigerian Federal Government and the NNPC had insisted that fuel subsidy had ended, oil marketers said on Sunday that the government was implementing quasi-subsidy.

They stressed that with the latest rise in crude oil price, the cost of petrol was meant to increase, stating that if the government insists on leaving the commodity at N617/litre, then subsidy on PMS had been returned quietly.

Chief Chinedu Ukadike, the National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria,, in a statement on Sunday, said,

“The Group Chief Executive Officer of NNPC, in one of his statements, had pointed out that as long as the dollar continues to rise, Nigerians should not expect petroleum products prices to be pegged.

“The cost of crude oil is also on the rise and it impacts on petrol price, because PMS is derived from crude.” [CONTINUE READING HERE]>>>>