Petrol Prices Rise Third Time in 60 Days Despite Falling Crude Prices

Petrol Prices Rise Third Time in 60 Days Despite Falling Crude Prices

The Nigerian National Petroleum Company Limited (NNPCL) has raised the price of Premium Motor Spirit (PMS), commonly known as petrol, to N1,025 per litre in Lagos, up from N998, while in Abuja, the price increased from N1,030 to N1,060. This marks the third price hike in just two months.

The increase comes as the price of Nigeria’s Bonny Light crude oil has decreased to $72 per barrel, down from $75, representing an 8.2% drop compared to the budget reference price of $77.96 per barrel. Filling stations quickly adjusted their prices, with some motorists rushing to buy petrol before further increases took effect.

The latest adjustment follows earlier hikes due to the deregulation of petrol pricing by the Federal Government. An industry source indicated that the fluctuation in prices is influenced by market forces and the current weakness of the naira, which is trading at N1,664 to $1.

Experts have reacted, highlighting the need for the government to adopt measures that mitigate the financial strain on Nigerians, who are already facing significant hardships. They also noted that the deregulated market could see prices decrease in the coming weeks as crude oil prices fall.

In response to the rising petrol prices, the Joint Action Front has called on Nigerians to resist these increases, emphasizing the negative impact on household finances. Independent marketers are also expected to raise their prices, with some already selling petrol for as high as N1,200 per litre.

Meanwhile, President Bola Tinubu has urged stakeholders in the oil sector to prioritize local production to reduce dependence on imports and improve the economy. He emphasized the need for a market-driven approach to pricing and called for collaboration among local refineries to meet domestic demand.