Motorists early today woke up to another increase in the pump price of premium motor spirit, pms, otherwise called petrol from the former price range of between N488 and N537 per litre to N568 to N617 per litre.
This came barely seven weeks after the subsidy on petrol was removed by President Ahmed Bola Tinubu during his inaugural speech on May 29, 2023.
Shocked motorist scampered today to adjust to the new reality of the increase as many found it a bitter pill to swallow.
READ ALSO: http://Media group takes PWDs campaign to Tinubu, NASS
Analysts’ maintained that petrol pump prices across the country are responding to the fuel importation by other marketers, different from the Nigerian National Petroleum Company Limited (NNPCL) swap deal, and other recent policy measures such as the reintroduction of the 7.5 per cent VAT on diesel, naira depreciation, and the implementation of some provision of Fiscal Policy Act 2022.
Specifically, both NNPCL mega stations and other retail outlets have adjusted their pump prices, which were previously traded between N488 and N537 per litre after petrol subsidy removal, to a range of N568 to N617 per litre, depending on the location with Lagos recording the lowest pump price.
Analysts from Proshare have argued that deregulating petrol prices and discontinuing the NNPCL swap deal in the absence of functioning domestic refineries would result in exorbitant pump prices. The current price increase underscores the argument that regulators should establish a pricing framework that sets limits for certain cost components to prevent market infractions.
READ ALSO: http://Why I’m Joining APC, by Jerry Alagbaso
They said high petrol prices intensify inflationary pressures in the country and significantly raise energy and logistics costs for micro, small, and medium-scale enterprises (MSMEs), which are already grappling with the escalating costs associated with subsidy removal and foreign exchange depreciation.
Additionally, it raises concerns among households regarding the affordability and availability of petrol, which has served as a viable substitute for household power generation.
The analysts believe the high rate of price adjustment may also cripple petroleum products marketing business as motorists seek alternatives.
