Although the Nigerian National Petroleum Company Limited and other oil marketers have not declared an increase in the price of petrol, they have acknowledged that the lack of foreign currency and the hike in the price of crude oil were the two main reasons influencing the price of PMS.
The naira’s depreciation against the US dollar, combined with the recent spike in global crude oil prices, has Nigerians concerned about a likely increase in the price of Premium Motor Spirit, also known as petrol.
After President Bola Tinubu removed the subsidy on PMS, the price of petrol increased from N198 per liter in May to above N500 per liter in June.
In July, the price increased once more to over N600/liter, and there were worries that it might rise further in August, going by the crash of the naira against the dollar.
On Thursday at the parallel market, the value of the naira versus the dollar fell below N900. At the official Importers and Exporters forex window, it also decreased in value relative to the US dollar.
Additionally, on Thursday, the price of Brent, the world’s standard for crude oil, was around $87 per barrel. A few weeks ago, it traded for less than $80 per barrel.
Oil marketers confirmed that there may be another increase in gas prices this month.
The price of gas at our retail shops will keep rising as long as the naira is falling against the dollar, according to the president of the Petroleum Products Retail shops Owners Association of Nigeria, Billy Gillis-Harry.
He urged Tinubu to see to it that the refineries in Nigeria are once again put to use.
He said, “We have asked the President to declare a state of emergency on our refineries to hasten their repairs.
The National President of the Independent Petroleum Marketers Association of Nigeria, also commented on the incident, stating that the PMS price would continue to vary despite the complete deregulation of the downstream oil industry.
“The price of petrol would increase or decrease if there was deregulation and no subsidy. However, others that import and sell at lower prices would drive you out of business if you wanted to make profit.”
