Nigeria has increased the price of petrol: “Consumers of petrol in the country would pay a 16.4 per cent increase in the price of petrol for the month of July, the Petroleum Products Pricing Regulatory Agency (PPPRA) announced on Wednesday.” This makes sense though: if crude oil price goes up, petrol price should go up. Nigeria will get the normal equilibrium price for petrol in say two years when Dangote Refinery begins operations.
“After a review of the prevailing market fundamentals in the month of June, and considering marketers’ realistic operating costs as well as practicable, we (PPPRA) wish to advise a new PMS (premium motor spirit) pump price band of N140.80-N143.80 per litre for the month of July 2020 the new retail price band for premium motor spirit (PMS), popularly called petrol, for June 2020.
“Kindly note that the ex-depot price for collection includes the statutory charges of bridging fund, marine transportation average, National Transport Allowance (NTA) and administrative charge. All marketers are advised to operate within the indicative prices as advised by the PPPRA.”
Nigerians said they want FREE market pricing. That is it in action. We do hope if crude oil price drops that price of petrol will come down..
Meanwhile, there is a report that Nigeria is importing dirty fuel: “Black market fuel made from stolen oil in rudimentary “bush” refineries hidden deep in the creeks and swamps of the Niger Delta is less polluting than the highly toxic diesel and petrol that Europe exports to Nigeria, The Guardian has reported, citing a new laboratory analysis.” And the Nigeria Labour Congress (NLC) is not accepting the new fuel price. Of course, they may want the nation to return back to the subsidy era.
The Nigeria Labour Congress (NLC) on Thursday rejected the new fuel price announced by the Petroleum Products Price Regulatory Agency (PPPRA) on Wednesday.
The labour movement through its president, Ayuba Wabba, asked the federal government to immediately return to the old fuel price of N121.50 per litre.
The NLC was reacting to the announcement in Abuja by the Executive Secretary of the PPPRA, Saidu Abdulkadir, of a new “retail price band advisory” of N140.80 and N143.80 per litre for petrol for the month of July, 2020.
NB: This piece has been updated.