Experts are warning that the price of Premium Motor Spirit (PMS), commonly known as petrol, in Nigeria may rise again due to several factors, including fluctuations in global crude oil prices and the depreciation of the naira. As of now, PMS is priced at around N1,030 per liter in some areas, and this figure could increase further if these economic challenges persist.
Key reasons for the potential price hike include:
- Global Crude Oil Prices: The price of crude oil has been rising on the international market, affecting the landing cost of imported petroleum products.
- Exchange Rate Volatility: The weakening of the naira against the U.S. dollar raises the cost of importing refined petroleum, as Nigeria depends on imports to meet local demand.
- Increased Costs of Logistics: Rising transportation and distribution costs across the country could also contribute to higher prices at the pump.
Since the Nigerian government removed fuel subsidies in May 2023, the price of petrol has been subject to market forces, making it more vulnerable to changes in external conditions. Experts have urged the government to explore ways to mitigate the impact of these factors on the populace, such as by promoting local refining capacity or offering temporary relief measures to cushion the effect of rising fuel prices on citizens.
