The Nigerian Government has sent the price of petrol rising through the roof as it has announced an exponential increase in prices less than two months after bringing it down.
According to the Petroleum Products Marketing Company (PPMC), the depot price of petrol will now be sold to marketers for N151.56 per litre against N138.62.
The new price change was contained in a memo to industry stakeholders which read, “Please be informed that a new product price adjustment has been effected on our payment platform.
To this end the price of premium motor spirit (PMS) is now one hundred and fifty one naira, fifty six kobo (N151.56) per litre.
This is effective 2nd September, 2020.”
The new pricing regime is said to be as a result of the removal of subsidy on petroleum products by the Federal Government. In June, the Petroleum Pricing Regulatory Agency (PPPRA) removed the cap on the pricing template for petroleum.
The removal of fuel subsidy means, the price of petrol in Nigeria will now be determined by market forces. Although Nigeria is one of the largest producers of crude oil in the world, it imports most of its refined petroleum products as local refineries are incapacitated.
In reaction to the increase in fuel depot price, the Petroleum marketers association has ordered its members to sell the product at N161 per litre. Understandable, this has parked outrage among Nigerians on social media.