As crude price hits almost $60/barrel, the Federal Government has asked Nigerians to prepare for another hike in petrol price because the international price has a direct bearing on the cost of refined products.
The Minister of State, Petroleum Resources, Mr Timipre Sylva, gave the hint at the launch of the Nigerian Upstream Cost Optimisation Programme (NUCOP).
According to him, “the higher the price of the crude oil at the international market, the higher the price of refined products like petrol, diesel and the rest”.
He said that the increase would reflect market realities, assuring the citizenry that mechanisms were in place to insulate the consumers from predatory practices of oil marketers.
The President of the National Association of Road Transport Owners (NARTO), Mr Yusuf Lawal Othman said the body was awaiting the Federal Government’s pronouncement on the new bridging cost (freight rate) of N9:11k per litre, as against the current rate of about N7.51/litre.
According to him, the new bridging cost was long overdue considering the unsavoury environment members of the association operate in.
Analysts note that once the new bridging cost comes to play, it will increase petrol cost to a new price, regardless of crude cost.
Meanwhile, Nigerians may face another round of horrendous petrol scarcity, as depot owners reportedly shut down their operations on Monday, claiming that they have run out of products.
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