Why Fuel Price Would Increase To N900/litre

According to Petrol marketers, the pump price should be between N890 and N900 per litre given the depreciation of the naira against the US dollar and the rise in the price of petroleum on the world market on Thursday.

This comes on the heels of Brent crude’s price which settled at $95/barrel on Thursday. It had peaked at $97/barrel the preceding day, which was the highest figure in 2023.

Oil had started the year at about $82/barrel, dipped to $70/barrel in June, but traded above $94/barrel in the past week.

Depending on the area, petrol currently costs between N598 and N617 per litre, which feeds rumors that the Federal Government is subsidizing the good.

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The reintroduction of the petrol subsidy has not been publicly acknowledged by the government or the NNPCL. In his inaugural address on May 29, President Bola Tinubu declared the subsidy regime to be over.

Meanwhile, at the Investor & Exporter forex window, the naira appreciated slightly after closing at 770.71/$ on Wednesday from 776.76/$ on Tuesday.

According to oil marketers, this increase in crude prices and the FX issue has rendered it difficult for the price of petrol to continue at N617 a litre, reaffirming their stance that undercover government officials had reinstated fuel subsidies.