Crude Oil Reaches $84/Barrel, Fueling Speculations of Petrol Price Hike in Nigeria
Brent crude oil, the international benchmark, surged to $84/barrel on Wednesday, raising concerns about a possible increase in the pump price of petrol in Nigeria.
Oil marketers attribute the potential petrol price hike to the rise in crude oil price and exchange rates, which account for over 80% of the cost build-up for petrol.
Despite other oil marketers importing petrol, the Nigerian National Petroleum Company Limited (NNPCL) remains the major importer and maintains its stance on selling petrol at market price.
Nigeria’s downstream oil sector is fully deregulated, allowing market forces to determine petrol prices, making it susceptible to fluctuations in global oil prices.
Opinion: The spike in crude oil prices to $84/barrel poses challenges for Nigeria, as petrol prices are influenced by international oil rates and exchange rates. With the downstream oil sector fully deregulated, the potential increase in petrol prices could impact consumers’ living costs and put additional strain on the nation’s economy. Policymakers need to strike a balance between market forces and the welfare of citizens to navigate the situation effectively.