Experts blame deregulation, global oil prices as petrol hits N1,400/litre

The increase in the pump price of Premium Motor Spirit (PMS), also known as petrol, to as high as N1,400 per litre has sparked concerns among industry experts, who warn that the development will further deepen the economic hardship facing Nigerians.

Speaking on the latest price hike, an energy law expert at the University of Lagos, Prof. Dayo Ayoade, said the increase reflects the realities of Nigeria’s deregulated petroleum market, where domestic fuel prices are largely determined by international crude oil prices and foreign exchange movements.

According to Ayoade, the Petroleum Industry Act (PIA) limits government intervention in fuel pricing, while challenges surrounding the Federal Government’s naira-for-crude arrangement have also reduced the volume of crude available for domestic refining.

Reacting to the development, oil and gas analyst Abdullahi Shehu urged the Federal Government to ensure local refineries receive crude oil in naira at subsidised rates, arguing that such a move would help reduce the cost of petrol and cushion the impact on consumers.

Also commenting, economist and oil and gas expert Dr. Marcel Okeke warned that the continued rise in petrol prices would worsen the country’s cost of living crisis, with higher transportation costs expected to push up the prices of goods and services.

Meanwhile, the Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN) in Borno State, Mohammed Kuluwu, said the frequent fluctuations in petrol prices have left many marketers reluctant to load products due to uncertainty in the market.

The latest increase comes after global crude oil prices surged, with Brent crude rising above $100 per barrel, prompting higher ex-depot and pump prices across Nigeria.

The development has pushed retail petrol prices to between N1,260 and N1,400 per litre in several parts of the country, forcing transport operators to review fares and adding further pressure on households already grappling with rising living costs.

Source Guardian