The price of Premium Motor Spirit (PMS), commonly known as petrol, is set to rise as depot owners across Nigeria have increased their loading prices to as much as N950 per litre....Read Full Article >>➤
This price hike, representing a 4. 74% increase, is directly linked to the recent surge in global crude oil prices. Nigeria’ s Bonny Light crude, for instance, has jumped from $73 per barrel last week to $80 per barrel this week, intensifying the cost pressures faced by depot operators.
Reports reveal that several depots have already adjusted their pricing in response to these developments. Swift Depot has raised its loading price from N907 to N950 per litre, while Wosbab Depot has implemented a similar increase from N909 to N950 per litre.
Sahara Depot followed suit, adjusting its price from N910 to N950 per litre. Shellplux, however, raised its price even higher, from N908 to N960 per litre. These increases are expected to push up pump prices, further straining the budgets of Nigerians.
The rise in petrol prices is coming at a time when the country is grappling with significant economic challenges. Nigeria’ s reliance on imported refined petroleum products, due to its insufficient domestic refining capacity, makes the economy particularly vulnerable to fluctuations in global crude oil prices. The current increases in depot prices reflect the rising costs of importing and distributing fuel within the country.
For ordinary citizens, the potential consequences of this development are significant. Petrol is a critical commodity used not only for transportation but also for electricity generation in households and businesses. Any increase in fuel costs typically triggers a chain reaction, leading to higher transportation fares, increased food prices, and rising costs of goods and services.
Industry experts have expressed concern about the situation, urging the government to take immediate action to mitigate the impact of rising fuel costs on the public. Suggested measures include improving the nation’ s refining capacity to reduce dependence on imports, enhancing public transportation systems, and introducing targeted support for low- income earners who are most affected by fuel price increases.
The deregulation of the downstream oil sector, which was aimed at creating a competitive market and stabilizing prices over time, has yet to achieve its intended goals due to persistent infrastructure and economic challenges.
As Nigerians brace for the likely consequences of higher petrol prices, the need for comprehensive reforms in the petroleum sector and targeted relief measures has become more critical than ever.
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