Nigerians to Pay More for Petrol as Oil Prices Rise
The partial deregulation of the oil sector has started having impacts on how much Nigerians will be paying for petroleum motor spirit or simply petrol following an uptick in global price of oil.
Based on a new pricing template, the Pipeline and Product Marketing informed the public that Government has raised pump price of petrol to N151.56 effective from September 2, 2020.
Meanwhile, filling stations are however selling to commuters in Lagos as at 5.pm on Wednesday at N160 per litre.
Petrol was sold at N145 per litre across filling station till August, 31.
Oil rose towards $46 a barrel on Wednesday, gaining for a third day, supported by a report that U.S. crude inventories fell.
This is also on the backdrop of surveys showing stronger manufacturing raised hopes of a recovery from the coronavirus pandemic.
U.S. crude stocks fell by 6.4 million barrels, the American Petroleum Institute (API) said, more than forecast.
Manufacturing surveys around the world showed expanding activity in August, although the outlook remains shaky.
Brent crude, the global benchmark, was up three cents at $45.61 a barrel as of 1010 GMT, climbing for a third day.
Read Also: Deregulation: It is unrealistic to continue subsidy – FG
U.S. West Texas Intermediate rose 11 cents, or 0.3 per cent to $42.87.
“Market players are currently riding a wave of optimism, though it could come crashing down at any moment,” said Stephen Brennock of oil broker PVM.
U.S. crude inventories were forecast to fall by 1.9 million barrels.
The U.S. government’s Energy Information Administration issues its official figures at 1430 GMT, which will be scrutinised to see if they confirm the API’s numbers.
The EIA figures “may provide some short-term volatility but are unlikely to provide enough impetus to break oil out of its recent trading ranges,” said Jeffrey Halley, analyst at broker OANDA.
Oil has recovered from historic lows hit in April, when Brent slumped to a 21-year low below $16 and U.S. crude went negative.
A record supply cut by the Organisation of the Petroleum Exporting Countries and allies, a grouping known as OPEC+, has helped support prices.
The producers have begun to return some crude to the market as demand partially recovers and OPEC in August raised output by about one million barrels per day (bpd), a Reuters’ survey found on Tuesday.
By design, it is only the Nigerian National Petroleum Corporations (NNPC) is allowed to import fuel into the country.
Many Nigerians are of the view that with the existing model, pump price of fuel would continue to be uncompetitive for the masses that are already suffering from multiple economic anomalies.
Nigerians to Pay More for Petrol as Oil Prices Rise
