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Nigeria’s Pump Price At ₦617 is 68% lower than global prices.

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Nigeria's Pump Price At ₦617 is 68% lower than global prices.
Nigeria's Pump Price At ₦617 is 68% lower than global prices.

The recent move by President Bola Tinubu to deregulate the petroleum sector led to a drastic increment in petrol prices across the country.

Before the decision to remove the subsidy, petrol prices stood between ₦190 – ₦215 and then after the subsidy removal, they moved sharply from that amount to ₦537 and, most recently, ₦617 as announced by the Nigerian National Petroleum Company Limited (NNPCL).

The development has led to an all-around increase in the price of different commodities and other sectors like transportation.

The analysis, which showed the price of petrol across different countries as of July 17, 2023, showed that Nigeria was placed first as the country with the cheapest petrol with ₦617. Liberia came in second place with ₦747.342. Next on the list was Gabon ₦819.493, Sierra Leone ₦862.575, Benin ₦877.974, ₦Ghana ₦892.

Others include Guinea ₦1095, Cote d’Ivoire ₦1101, Burkina Faso ₦1148, Togo ₦945.510, Mali ₦1169.731, ₦Cape Verde ₦1149.102. The price difference has been linked to the various taxes and subsidies for petrol in the listed countries.

However, a few listed countries own functioning refineries, while others import refined fuel.

The report further revealed four significant reasons for price changes in the fluctuation of fuel prices. These include Crude oil prices, Exchange rates, Seasonal variations, Refining, Marketing and Distribution costs.

Going by the recent development in the oil sector, Nigeria’s position as the country with the lowest petrol pump price in West Africa may be threatened as oil marketers have insisted on an upward price review.

According to the chairman of the Major Oil Marketers Association of Nigeria, Tunji Oyebanji, the current petrol prices in the country were not a true reflection of the market. Oyebanjio told The Punch that oil prices always reflected current market realities. In neighbouring African countries that import petrol

“If the prices in neighbouring countries reflect true market prices and our own do not, there is still a danger. We won’t know the exact situation until we all import at the new exchange rate, know the price and compare it with our neighbours. Likely, the differential will not be so much,” Oyebanji added.

ALSO READ:

Fuel Subsidy: We’ll Recommend Salary Increment, Palliative Measures for Nigerians – Gov Bala


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