Nigeria hike petrol price to N140.8 per liter in a new month announcement
Nigeria on Wednesday increased the pump price of petrol to N140.80 per liters from previously N129.6 a liter in response to recovery in the global prices of crude oil.
In a circular issued by the Petroleum Products Pricing Regulatory Agency (PPPRA), the government organisation saddled with the responsibility of fixing prices of domestic consumption of fuel announced a new price band of N140.80 to N143.80 per litre for Premium Motor Spirit (PMS).
Global crude oil prices climbed to $42.94 per barrel this week, prompting the review of the local retail prices of petrol by the regulatory agency.
“After a review of the prevailing market fundamentals in the month of June and considering marketers’ realistic operating costs, as much as practicable, we wish to advise a new PMS pump price band of N140.80-N143.80 per litre for the month of July 2020.
“All marketers are advised to operate within the indicative prices as advised by the PPPRA,” the regulatory agency said in the circular dated July 1, 2020, to marketers.
A visit to some fuel stations in Lagos areas already adjusted their pump price immediately to reflect the new petrol price.
Nigeria had announced full regulations of the downstream sector in May, riding on the sharp decline in global prices of crude oil due to the impact of Covid-19.
The government had said there was no going back on the deregulation of the market which means the pump prices of fuel will be determined by the international prices of crude oil.
Nigerians had heaved a sigh of relief after the leadership of the National Assembly intervened on Monday to stave off a planned increase in electricity tariff by the distributions companies on July 1, in a bid to adopt cost reflective policy.
Analysts said in a deregulated environment, government should not be the one announcing a new product price, which ordinarily should be left for the marketers and operators in the sector.
The new price pushed Nigeria domestic fuel price above the pump price in Angola and Sudan, two major oil producers also in the continent.
Prices of gasoline in Angola was equivalent of N107.22 percent, while the same product was selling at N54.02 per liters in Sudan, according to Globalpetrolprice.com, which monitor prices of the product globally.
Prices of fuel are higher in Togo at N282.49 per liter, Chad at N344.31 and South Africa at N293.38 per liter equivalent in naira term.