NEW YEAR, SAME PROBLEM! Nigerians Wail As Petrol Price Goes Up To N1200/Litre | SEE WHY
On Tuesday, the Nigerian National Petroleum Company Limited and fuel marketers affiliated with the Independent Petroleum Marketers Association of Nigeria clashed once more over the removal of petrol subsidies.
This occurred against the backdrop of the naira’s depreciation against the US dollar at both the official Investors & Exporters Window and the parallel market.
The local currency closed at 998/dollar on Tuesday in the official market, while it traded at 1,225/dollar in the black market.
On the back of the falling naira, economists and oil marketers claimed that PMS subsidies were increasing in recent times, but the NNPC quickly refuted these claims, declaring that it was recovering its full cost on the importation of Premium Motor Spirit, also known as petrol.
Bismarck Rewane, Chief Executive Officer of Financial Derivatives Company, explained during a live television program on ChannelsTV on Sunday that the fuel subsidy was reduced rather than removed.
Similarly, oil marketers told our correspondent on Tuesday that petrol subsidies were increasing due to the naira’s depreciation against the US dollar and the rising cost of crude oil, emphasizing that in a free market, PMS should sell for N1,200/litre.
Petrol, which is solely imported into Nigeria by the NNPCL, currently sells for between N617/litre to N660/litre, depending on the location of purchase in Nigeria.
