With increase in crude oil price, petrol price may hit ₦190

Obinwannem News With increase in crude oil price, petrol price may hit ₦190

Petrol pump price may hits 190 , following the increase in the price of crude oil; which is close to $60 ,highest in over a year.

Obinwannem confirmed this from top marketing officials, that increase in oil prices has brought back subsidy as the pump price should be between ₦185 and ₦200 per litre; to reflect the further rise in crude oil prices.

Meanwhile, Mr Clement Isong, Executive secretary and chief executive officer, Major Oil Marketers association, blamed fuel stations in Lagos for the continuous sale of fuel at the rate of 160 and 165. Isong said it meant that somebody is responsible for funding the cost of subsidy, which the country cannot afford at this time.

Isong said “members of my association are operating in Nigeria, and care about the long term sustainability of the industry as well as the country itself.

“So we know that, depending on what exchange rate you use, the pump price should be between ₦185 and ₦200 per litre”.

Isong added that while the demand for petrol is on the high side, the security of supply has being threatened . He also noted that smuggling might have resumed because of the significantly different prices across the borders which were recently opened.

Reacting to the commencement of discussion with representative of Labour movement on how to raise freight rate from ₦7.51 per litre to ₦9.11 per litre.

Mr Mike Osatuyi, National Operation controller , independent marketers association, said, “Based on $56 per barrel of crude oil, our pump price should be about ₦186 to ₦190, but now the oil price has gone to $59, then pump price should not be less than ₦200 per litre, there is no way Nigerians can avoid petrol price increase”.

Relatively, other concerns on who bears the latest subsidy, on behalf of the government – if the price is left unchanged due to rise in oil price – Dr Obateru , head of the Group Affairs Division of the corporations, stated that “whatever would be done regarding petrol pump price would be based on the advise from petroleum products pricing regulatory agency; and other marketers are requested to join NNPC in importation of petroleum products, to relieve NNPC of the burden”.

Ijeoma Njoku reporting, Obinwannem News

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