Reasons for fresh petrol price hike – Independent Marketers
The Nigerian National Petroleum Company Limited has increased the pump price of Premium Motor Spirit (PMS), popularly known as petrol, to N617 per litre at outlets in the Federal Capital Territory.
In Lagos, however, some outlets are selling for between N493 and N600 per litre.
The latest hike in the price of fuel was announced on Tuesday, about two months after President Bola Tinubu announced officially that the subsidy regime had come to an end.
The NNPCL has however not given any official reasons for the fresh price increase.
But the National Operations Controller, Independent Marketers Association of Nigeria, Mike Osatuyi, while speaking to the media, noted, “It is not about the NNPC Limited. It is about the market fundamentals. Every marketer stands alone with its different cost elements.
“The low value of the Naira is currently impacting the market. It is now more than N800 to a dollar.
“This is why the market is responding this way. It has to spread because, as operators, our price depends on our cost.
“Even though some importers have been able to import the product, it cannot be cheap because it is based on the current market fundamentals, especially foreign exchange.”
“The public should also know that importers source their foreign exchange from the banks at the current rate,” he added.
