If you are wondering the reason for the latest increase in the pump price of petrol, here it is, from Aliko Dangote, President of Dangote Industries Limited
He made the reason known in a recent television interview, attributing it partly to the continued smuggling of the commodity to neighbouring countries, where it sells higher.
Pump price of petrol in some neighbouring countries were between 30 per cent and 50 per cent higher than in Nigeria.
This makes it more lucrative for those in the smuggling business, to take away the commodity from Nigeria and worsening the supply challenges.
He said the price difference created a strong financial incentive for traders to move petrol out of the country.
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Dangote said the price of petrol in Nigeria could not be considered in isolation from prices in neighbouring countries.
According to him, the continued movement of Nigerian petrol across the borders was partly driven by the significant difference between domestic prices and those obtainable in neighbouring countries.
