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See Why Fuel Prices Increased to N617/Liter

July 19, 2023
in Business
See Why Fuel Prices Increased to N617/Liter
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Nigerians have been lamenting the recent increase in the pump prices of Petrol, known as Premium Motor Spirit (PMS) from 537 to 617 naira Per Litre.

The increase, which was announced by the Nigerian National Petroleum Company Limited (NNPCL) has forced some fuel stations to start selling fuel at N640 per litre.

Recall that a day after President Tinubu was sworn into Power the Nation’s Apex Petrol station increased the fuel price from N195 per litre to 537 per litre, following Tinubu’s declaration “Subsidy is Gone.”

As Nigerians struggle to cope with these harsh realities, they are looking for answers as to why fuel prices have continued to rise. Let’s take a look at some of the reasons.

The increase in crude oil prices in the international market

Addressing newsmen, The National Operations Controller of the Independent Marketers Association of Nigeria (IPMAN), Mike Osatuyi noted that he earlier projected that from the third week of July 2023, when new fuel imports come into the country, there could be an upward review of fuel pump prices, which has now happened.

This is because the Brent crude benchmark price recently surpassed $80 per barrel for the first time since May 2023.

The increase in the Dollar Naira exchange

Another reason for the increase as stated by the IPMAN Controller, is the increase in the dollar to Naira exchange. This is as the official Investor and Exporters window on Monday, 17th of July 2023, traded at N820/$1 at the unofficial I&E Window.

With these factors, it is however not clear when the oil prices will come down as they are largely been determined by the market forces as started by Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL).

Rather than drag the president, Bola Ahmed Tinubu, Nigerians are advised to create alternative energy sources and make some lifestyle changes to cope with increasing fuel pump prices.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : BusinessElitesAfrica – https://businesselitesafrica.com/2023/07/18/see-why-fuel-prices-increased-to-n617-liter/

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