With escalating landing costs, the price of petrol is expected to rise again.

 There are significant indicators that a further hike in petrol prices—the third in ten weeks—may be imminent, since data from oil marketers indicates that the increase may come much sooner than later.

Subsidy removal in Nigeria 🇳🇬 

New information about the rise in the landing cost of petrol supports this prediction. which increased from N460 per litre in June 2023 to N632.17 per litre in July 2023, a monthly increase of 37.4%. This figure does not even account for other out-of-pocket costs like taxes and transportation, which could raise the ultimate cost to around N700 per litre.

According to certain marketers who spoke with Financial Vanguard, the paucity of foreign currency and the weakening exchange rates would cause the landing cost to increase even more in August. Since the previous pump price hike, the value of the naira has decreased by around 6.5 percent on the official market and by 25 percent on the black market. Many find importing at the present pump price to be unprofitable as a result of these difficulties.

Mike Osatuyi, the National Operations Controller for the Independent Petroleum Marketers Association of Nigeria, IPMAN, commented on the oil price scenario to Financial Vanguard and said: "It is positive since the high crude oil prices indicate greater money for the federal government. The government is no longer involved in the payment of fuel subsidies, thus the money would presumably be used to fund programming and projects.

Mike Osatuyi discussing at TVC NEWS

He did, however, add that since this is a result of a completely unregulated market, it was nearly inevitable that the pump price would not increase. He expressed confidence that it will decline in the future due to competition.

The primary importer is still the Nigerian National Petroleum Company minimal (NNPCL), with minimal private imports.

Nigeria's diminishing crude oil production, which affects the nation's ability to import refined goods, makes the issue worse. Nigeria's production is declining, and this has been observed by the Organisation of Petroleum Exporting Countries (OPEC). Read also:Bitter Kola Top Secrets

According to other experts who provided their opinions on the matter, the high price of crude oil could bring in more money for the government, even if it means that consumers may have to pay more for fuel.

With growing crude oil prices and the Naira's devaluation perhaps continuing to affect prices and posing difficulties for deregulation initiatives, the overall market situation is still unknown.







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