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FG To Increase Fuel Price To N130

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There are indications that the Federal Government will increase the price of Premium Motor Spirit (PMS), also known as petrol to N130 per litre.

According to sources at the Petroleum Product Pricing Regulatory Agency (PPPRA), if the plan sails through, the government may also allow independent marketers resume the importation of fuel to sell at prices convenient to them.

The sources revealed that the resumption of products importation by marketers will be an indication that price regulation by government may no longer be feasible since the recent price modulation by the PPPRA has failed to resolve the crises.

A credible source from the agency further stated that petrol may now be sold for N130 per litre.

Recall that the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, had said the Federal Government was looking at privatising the nation’s refineries within the next 12 months.

READ ALSO: Forex Now Available To Import Petrol – IPMAN

Signs that the Federal Government had opted for partial deregulation of the sector was evident in the last couple of days, as the PPPRA had refused to update its Products Pricing Template for May 2016.

The PPPRA template was last updated April 28 and released April 29, 2016. In the template, the Expected Open Market Price for PMS was N98.62 per litre for NNPC retail outlets and N99.38 per litre for independent and major oil marketers.

Subsidy According to the template, at N98.62 and N99.38 per litre, the Federal Government is paying subsidy of N12.62 and N12.88 per litre, respectively.