FG To Increase Fuel Pump Price From N86 To N110 Per Litre

FG To Increase Fuel Pump Price From N86 To N110 Per Litre

fuel pump

Indications have emerged of the federal government’s plan to increase the pump price of Premium Motor Spirit (PMS), popularly known as fuel.

The development according to oil marketers, is as a result of the recent hike in the price of crude oil at the international market. Unofficial sources say that the government is aiming for an official pump price of N110.

The corporate affairs manager of Nipco PLC, a major downstream sector operator in Nigeria’s Oil and Gas Industry, Lawal Taofeeq, implored the federal government to manage petrol subsidy properly in order to ensure adequate sustenance of the present improvement in fuel supply.

According to him, the hike in the price of crude oil could force the government to review the pump price of petrol upwards especially if the government insists on not paying petrol subsidy to oil marketers.

He said: “We’ve started importing products. But on sustenance, it depends on how the government handles the issue of subsidy. You know subsidy on petrol has returned and its management will go a long way in affecting fuel supply.

“Before, there was no subsidy on petrol. But now, considering the rise in crude oil price, there is subsidy despite the fact that the official pump price hasn’t been changed. So, if the subsidy issue is not managed properly, marketers may not want to import the product unless they are sure of their money.

“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.”

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