Why the Federal Government is acting so confused on price for Petrol in Nigeria

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Why the Federal Government is acting so confused on price for Petrol in Nigeria

It was just some months ago that the Nigerian government brought down the petrol price which even took time for filling stations to adjust and just when we were trying to get used to the newly instated price we hear that the Federal Government has increased the price again.

According to the Petroleum Products Pricing Regulatory Agency a new pump price band of N140.80 and N143.80 per litre was announced.

In a circular dated July 1, 2020 to marketers, said, “After a review of the prevailing market fundamentals in the month of June and considering marketers’ realistic operating costs, as much as practicable, we wish to advise a new PMS pump price band of N140.80-N143.80 per litre for the month of July 2020. “All marketers are advised to operate within the indicative prices as advised by the PPPRA.”

With this recent development some of us think that the Federal Government is confused and is not suppose to make any increase especially during this pandemic.

We hear that the refenaries are nothing to write home about and are even struggling to survive but the Federal Government said in March that it had bowed to long-standing pressure to restructure the downstream oil sector and had therefore removed oil subsidy after the country was hit by lower oil prices, which placed more pressure on its foreign exchange reserves. Many also feel that they should look into refenaries instead of fluctuating price and putting the society into stress and confusion.

With this new development the Nigeria Labour Congress stated that there might be a protest if the issue is not looked into.

The Muhammadu Buhari administration moved the petrol price peg of N145/litre to N125 in March this year, the first time the price would be adjusted since it was reviewed in 2016, from N86 per litre to N145 by the President on his assumption of office.

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