Petrol prices are expected to rise even further in the following days, reaching N720 a liter. Already, at N600 per liter, Nigerians are struggling to afford basic necessities and transportation in their daily lives. Four factors have been highlighted as the causes of the country’s growing gasoline prices.
Naira, Landing Fee, and Other Considerations Petrol prices are projected to surpass N700 once more.
Petrol prices are expected to rise even further in the following days, reaching N720 a liter. Already, at N600 per liter, Nigerians are struggling to afford basic necessities and transportation in their daily lives. Four factors have been highlighted as the causes of the country’s growing gasoline prices.
There are significant signs that filling stations across the country will raise Premium Motor Spirit, also known as petrol, pump rates in the coming days, adding to the burden of already overburdened Nigerians. The suggested new pump prices will be modified from the present N580 and N617 values.
From 617 to roughly N680 and N720 per liter.
If implemented, the latest wave of increases will be the third in the 10 weeks since the announcement of the elimination of the gasoline subsidy.
No more subsidies One of the key reasons for the variations in gasoline prices is the absence of petroleum product subsidies in Nigeria. You may recall that in his inaugural speech, President Bola Tinubu announced the withdrawal of the subsidies, allowing market forces to determine pump prices. This no-subsidy policy implies that Nigeria is now exposed to international oil pricing.
Global crude oil prices:
Global crude oil costs are one of the key reasons behind rising gasoline prices. In his inaugural speech, President Bola Tinubu promised that there would be no more prolonged gasoline subsidies, allowing market forces to determine pump prices.
As a result, when crude oil prices rise, Nigerians must pay more.
Depreciation of the Naira Since the previous pump price rise, the Naira has devalued by around 6.5% in the official market and 25% in the parallel market versus the US currency.
the Independent Petroleum Marketers Association of Nigeria (IPMAN), and he confirmed the impending price hike as a result of the naira’s depreciation.
As long as the dollar continues to rise against the naira in the foreign currency market, the country’s petroleum prices will rise.
The price of gasoline will rise if the parallel market exchange rate remains between N910 and N950 per dollar and is closer to N800 on the official market. Foreign exchange scarcity Oil traders looking to import gasoline face a shortage of foreign currency (FX). The forex shortage prohibits merchants from obtaining the requisite currency for the commodity.
According to Punch, oil marketers are considering suspending imports due to the difficulty in obtaining foreign currency. If this occurs, NNPC will be the sole importer, and other marketers that get the commodity may boost prices. For more news