Subscribe to Updates

    Get the latest news as they happen

    What's Hot

    I’ll bring knowledge acquired over the years in Lagos to FCT – Fasawe

    September 25, 2023

    If I Were A Man, I Would Have Preferred Foreign Service – Hajiya Indo Muhammed (Bakori)

    September 25, 2023

    Funke Akindele stars in new drama ‘SHE Must Be Obeyed’ on Prime Video

    September 25, 2023
    Facebook Twitter Instagram
    Megastar Magazine
    • Politics

      Why First Lady Oluremi Tinubu Deserves To Be Celebrated At 63 – Lagos Assembly 

      September 23, 2023

      Buhari regretted some of his decisions as president – Adesina

      September 23, 2023

      Bauchi Governorship Election Petition Tribunal Upholds Gov. Bala Mohammed’s Victory

      September 20, 2023

      Nigeria now ready for business, says Tinubu

      September 20, 2023

      Lagos Carbinet: Fashola, Ambode Tutor Sanwo-Olu’s,New Team On Good Governance

      September 20, 2023
    • Entertainment
      1. People
      2. Events
      3. Fashion
      Featured
      Entertainment September 25, 2023

      Funke Akindele stars in new drama ‘SHE Must Be Obeyed’ on Prime Video

      Recent

      Funke Akindele stars in new drama ‘SHE Must Be Obeyed’ on Prime Video

      September 25, 2023

      Soyinka’s third novel released in French

      September 25, 2023

      MohBad was my best friend – Bella Shmurda at Canada candlelight procession

      September 24, 2023
    • Business

      Your funds are safe in Nigeria — Tinubu assures investors

      September 22, 2023

      Nigeria ‘ll not accept crumbs on investment agenda —Tinubu tells global energy industry

      September 20, 2023

      Nigeria now ready for business, says Tinubu

      September 20, 2023

      Ms Jane kimemia honored at Business day Top 25 CEOs and next bulls Award.

      September 20, 2023

      Non-interest products to reach N5tr in two years, SEC predicts

      September 19, 2023
    • Health

      I’ll bring knowledge acquired over the years in Lagos to FCT – Fasawe

      September 25, 2023

      I’ll bring knowledge acquired over the years in Lagos to FCT – Fasawe

      September 25, 2023

      Sanwo-Olu Inspects Ongoing Lagos-Badagry Corridor Cleanup …Says We May Return Environmental Sanitation

      September 23, 2023

      Make your children available for immunisation, Edo LG boss urges residents

      September 19, 2023

      Firm donates N5m to combat infant mortality

      September 15, 2023
    • Culture

      From pulpit to throne: What Pastor Adeboye told me, Soun of Ogbomoso opens up

      September 23, 2023

      Esama @89: WMA President, Enabulele Receives Historic 100 Years-Old Bronze Artefact

      September 21, 2023

      Olu of Warri Takes Fight Against Poverty To Global Stage 

      September 19, 2023

      Obasanjo: Why I ordered monarchs to stand and sit

      September 19, 2023

      Oyo Monarchs: I stand by my action; ‘Mrs Obasanjo’ an impostor — Obasanjo

      September 19, 2023
    • Lifestyle

      If I Were A Man, I Would Have Preferred Foreign Service – Hajiya Indo Muhammed (Bakori)

      September 25, 2023

      Why plain girls fare better at job interviews

      September 24, 2023

      From pulpit to throne: What Pastor Adeboye told me, Soun of Ogbomoso opens up

      September 23, 2023

      Fuel Subsidy Removal, Floating Naira, and the Lepers that have refused to Sit and Die

      September 23, 2023

      Top Success Habits That Will Change Your Life

      September 20, 2023
    • Sports

      Osimhen Staying At Napoli Good For Nigeria – Peseiro

      September 22, 2023

      UCL: Osimhen Wins Man Of The Match In Napoli’s Victory At Braga

      September 22, 2023

      Aruna jumps to 16th in latest ITTF Ranking

      September 21, 2023

      Tobi Amusan Gets Glo Plaudits on 3rd Diamond League Win

      September 20, 2023

      Brila Fm Chief Operating Officer To Attend World Football Summit In Spain

      September 19, 2023
    • Contact
    YouTube Facebook Instagram WhatsApp
    Megastar Magazine
    Home»News»Why we hiked petrol price –Oil marketers
    News

    Why we hiked petrol price –Oil marketers

    Ifetayo AdeniyiBy Ifetayo AdeniyiJuly 20, 20234 Mins Read
    Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email Telegram
    Share
    Facebook Twitter WhatsApp Telegram Email

    Why we hiked petrol price –Oil marketers

    •It’s death knell, say motorists

    Nigerians woke up to the rude shock of another fuel price hike on Tuesday morning with various filling stations, especially those owned by the Nigerian National Petroleum Company Limited (NNPCL), adjusting their pumps from N537/litre to N617/litre, showing an N80 hike.

    In Lagos, it was adjusted from N484 to N586 a litre, while in Kano, it went up to N620/litre.

    Daily Sun learnt from various oil marketers that the petrol price hike was a reaction to different market forces at play.

    A source said the free fall of the naira was to blame since it tumbled severally after being floated by the Central Bank of Nigeria.

    “Marketers now have to cough out more naira to buy dollars at black market rate to sustain importation. Cost of operations have increased dramatically as a result of this. The old price of N537 is no longer sustainable. It’s pure business suicide,” a marketer who craved anonymity told Daily Sun. Another marketer posited: “When President Bola Tinubu announced the removal of fuel subsidy on May 29 this year, the price of crude oil was about $74.75 per litre. But as of the end of trading on July 17, the price of crude oil had risen to $82.74 per litre. This implies that between May 29 and July 17, the price of crude oil in the international market has risen by $7.99 per litre or 10.68 per cent. “What this means is that since Nigeria still relies on imported petrol to meet local demand and with the deregulation of the sector, the price of petrol will continue to reflect the international price of crude oil.

    “Currently, the naira is trading at about N829 to a dollar due to persistent pressure from Nigerians and investors for foreign exchange to conduct international transactions.

    “With the removal of petrol subsidy, oil marketers are now free to source their foreign exchange anywhere around the world to import petroleum products and then recover their costs without impediments. This would be expected to have an effect on the price of the product.

    “The third factor is the high transportation costs. The distribution of petroleum products across the country is done through the movement of trucks and this is why, during the period of fuel subsidy, the Federal Government came up with the Petroleum Equalization Fund through Decree 9 of 1975 (as amended by Decree Number 32 of 1989 now chapter 352 of the Laws of the Federation).

    “The main objective of that Fund was to ensure price uniformity of petroleum products via the reimbursement of marketers for losses they incur in trucking products from depots to their filling stations anywhere in Nigeria.

    “But with deregulation of the downstream sector following the removal of fuel subsidy, the FG has now scrapped the payment of the fund. Since then, a lot of things have changed. What this means is that oil marketers will be solely responsible for how their products are transported from the depot to their respective petrol stations. The implication of this is that the cost of movement of this product would be transferred to consumers and this is expected to have an impact on the final price,” he explained.

    Meanwhile, motorists who bought petrol at the new price on Tuesday described the development as a death knell.

    “We’re finished. Prices of food and other goods and transportation will further increase. This is hell. If not worse than hell. Tinubu is definitely asleep. How are we sure government agencies are not conniving with these marketers to prey on consumers in the name of deregulation?” Marvin Shadare, a taxi driver, groaned.Another motorist, Mrs Sharon Stephen, lamented: “My husband gave me N6,000 this morning to buy above 10 litres, now it can’t buy up to that at N617/litre.

    There is no palliative whatsoever. Crime rates have swelled as people jostle to survive. The country has collapsed”.

    A tricycle operator, Musa Janjere, said most of his customers have resorted to trekking to reduce the transport fares.

    “They will tell you N100 and that you should allow them to trek the rest of you can’t charge N100 for the ride. You have to agree or else no passengers for you. We’re in trouble in Nigeria”, he lamented.

    The Sun

    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email
    Previous ArticleCanada gifts Nigeria $9.3m for COVID-19 vaccine, other services
    Next Article UK agency approves naira for financing transactions
    Ifetayo Adeniyi
    • Website

    Adeniyi Ifetayo Moses is an Entrepreneur, Award winning Celebrity journalist, Luxury and Lifestyle Reporter with Ben tv London and Publisher, Megastar Magazine. He has carved a niche for himself with over 15 years of experience in celebrity Journalism and Media PR.

    Related Posts

    News September 25, 2023

    Flood: NEMA distributes relief materials to 8,757 households in Kaduna

    News September 24, 2023

    Reps to enrol 14 million out-of-school children

    News September 24, 2023

    Foundation Trains Journalists in C’River On Climate Reporting, Data Storytelling

    News September 24, 2023

    ‘Japa’ Syndrome: Departments in teaching hospitals shutting down – MDCAN

    News September 23, 2023

    Weldios University Confers Honorary Doctorate Degree On Amb. Victor Okon

    News September 23, 2023

    Nigeria attracts $13 billion oil and gas investment to achieve 2.1 mbpd by 2024

    Leave A Reply Cancel Reply

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

    Don't Miss
    Health September 25, 2023

    I’ll bring knowledge acquired over the years in Lagos to FCT – Fasawe

    I’ll bring knowledge acquired over the years in Lagos to FCT – Fasawe The newly…

    If I Were A Man, I Would Have Preferred Foreign Service – Hajiya Indo Muhammed (Bakori)

    September 25, 2023

    Funke Akindele stars in new drama ‘SHE Must Be Obeyed’ on Prime Video

    September 25, 2023

    Soyinka’s third novel released in French

    September 25, 2023

    Subscribe to Updates

    Get the latest news as they happen

    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    About Us
    About Us

    We are Multimedia company that specializes in Events Coverage and Planning, Media Publicity, Publishing, Awards and Outsourcing in giving styles to your event and creating brand visibility for your products and services.

    Email Us: info@megastarmagazine.com
    Contact: +234 705 311 1111

    Our Picks

    I’ll bring knowledge acquired over the years in Lagos to FCT – Fasawe

    September 25, 2023

    If I Were A Man, I Would Have Preferred Foreign Service – Hajiya Indo Muhammed (Bakori)

    September 25, 2023

    Funke Akindele stars in new drama ‘SHE Must Be Obeyed’ on Prime Video

    September 25, 2023
    New Comments
    • Nene on Ohanaeze Ndigbo Women Solicits for a Panacea Peace,Unity Progress and promotes culture
    • Favour Egbune on EXCLUSIVE INTERVIEW: LOVE TO WORK WITH BURNABOY SOON, SAYS KENDRICK AWE.
    • Akpobo on Olu of Warri: Ex-President Jonathan Congratulates Tsola Says His Emergence Divinely Ordained
    • Austine on God is my role model,every other person copied from other people in a way or two – Hopey J
    Megastar Magazine
    YouTube Facebook WhatsApp Instagram
    • Privacy Policy
    • Terms of Use
    • Contact Us
    © 2023 Megastar Magazine. Designed by MANNDI

    Type above and press Enter to search. Press Esc to cancel.