FG may increase petrol price soon — Marketers

The Federal Government may soon effect an upward review
in the pump prices of Premium Motor Spirit, popularly
known as petrol, oil marketers have said, attributing this to
the recent increase in the cost of crude oil at the
international market.

Crude oil price had fallen below $30 per barrel earlier this
year, but as of May 2, 2016, the commodity’s cost rose to
$45.83, according to data obtained from the Nigerian
National Petroleum Corporation on Saturday in Abuja.

The oil marketers also told our correspondent that the
current challenge they faced in the industry was how to
sustain the improvement in the supply of petrol across the
country.

They said they had started importing petrol as many oil
majors and a few independent dealers were accessing the
United States dollars, as promised by the Minister of State
for Petroleum Resources, Dr. Ibe Kachikwu.

The Corporate Affairs Manager, Nipco Plc, a renowned oil
marketing firm, Mr. Lawal Taofeeq, stated that the petrol
subsidy issue must be managed properly by the
government in order to ensure adequate sustenance of the
present improvement in fuel supply across the country.

He noted that the marginal rise in the price of crude oil
could force the government to review the pump price of
petrol upwards, particularly should the government insist on
not paying petrol subsidy to oil marketers.

“The government has been using the price modulation
technique, and as crude oil price is going up, it will be
adjusting the pump price of petrol. Any moment from now,
there may be an upward review in the pump price of petrol
to take care of the rise in the price of crude oil in the
international market.”

The Executive Secretary, Major Oil Marketers Association of
Nigeria, Mr. Obafemi Olawore, stated that the NNPC had
ensured that petrol dealers would get the product, adding
that many marketers had also started importing the product.

On the measures so far put in place by oil marketers to
stabilise and sustain supply, Olawore said, “That is the
challenge all of us face now. The sustenance is now the
issue but we will try to sustain it.”