The landing cost of the Premium Motor Spirit (petrol) being imported into the country has risen to at least N205 per litre on the back of the recent increase in global oil prices, putting more pressure on the Nigerian National Petroleum Corporation.
The NNPC has been the sole importer of petrol into the country for more than a year as private oil marketers have stopped importation due to shortage of foreign exchange and increase in crude prices, which have reportedly made it unprofitable for them to import the product and sell at the official pump price of N145 per litre.
The Group Managing Director, NNPC, on December 23, 2017, said the Federal Government had been resisting intense pressure to increase the pump price of petrol, noting that the landing cost of the commodity was N171.4 per litre as of December 22, 2017 when oil price was around $64 per barrel.
Brent, against which Nigeria’s crude oil is priced, has risen by 25 per cent so far this year, hitting a new four-year high of $86.74 per barrel last week. It traded around $84.94 as of 1.40pm Nigerian time on Wednesday.
Source: The Punch