Motor Spirit May Soon Increase If Government Removes Subsidy- Oil Marketers


Oil Marketers says motor spirit may soon increase to N185-N200 per litre if Government removes subsidy.

According to Marketers, Premium Motor Spirit (Petrol) should be between N185-N200 per litre considering the current exchange rate and government subsidised removal.

According to two top major marketers, the increase in oil price had brought back fuel subsidy in the bid of the Government not to burden her citizens as the pump price of Petrol have been left unchanged for more than two months now.

According to NNPC, accurately 17.03 billion litres of fuel have been consumed by Nigerian within the space of 13 months.

The global increase in oil price has pushed up the landing cost of imported Petrol closer to the current pump price (N145) and in order not to burden her citizens, the Government seems to have subsidized it cost.

Since November 13, 2020 when the pump prices of PMS were last increased in the country, the price of the international oil benchmark, Brent crude, has increased by 43 per cent, rising from $41.51 per barrel to $59.34 per barrel on Friday.

Fuel marketers had in December expected another upward adjustment of PMS prices to reflect the further rise in crude oil prices, which closed at $51.22 per barrel on December 31.

Going by all these, marketers have suggested that, the pump price of Petrol should be between N185-N200 per litre because, the product is currently sold at between N160 and N165 per litre at many filling stations in Lagos.

According to the Executive Secretary/Chief Executive Officer, Major Oil Marketers Association of Nigeria, Mr Clement Isong, he said, as long as we continue to sell Motor Spirit at the current price which it is now, it means someone is bearing the cost of subsidy, adding that the Country cannot hear subsidy at this period of recession.

He however hoped that, the various refineries in Nigeria would start soon so that Nigerians can enjoy further the benefits of deregulation of pump price.

Source: PUNCH

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