Petrol Pump Price May Likely Increase For The Third Time As Crude Oil Price Surges
LAGOS AUGUST 4TH (NEWSRANGERS)-Petrol pump prices in Nigeria are likely to increase for the third time since subsidy removal as Platt benchmark price for petroleum products reached a staggering $979.75 per metric ton (MT) at the close of Wednesday’s trading session.
Additionally, the Argus benchmark price trading platform reported prices of $960.86/MT and $1,010.86, including premium operational costs.
By applying the standard volume conversion rate of 1,341 litres per metric ton, the benchmark dollar cost ranges between $0.7538 to $0.7649 cents per litre.
Consequently, the average landing cost per litre is projected to fall to between N655.06 and N669.29.
Industry players who are now responsible for conveying petroleum products to retail dispensing points, incurring an average cost of between N3 to N9 for distribution within Lagos and N14 to N45 to other parts of the country.
This shift implies that retail pump prices in Lagos could range between N658.06 and N664.06, where the purchase price is at N655.06 and N672.29 to N678.29, where the purchase price is at N669.29.
Other parts of the country may experience pump prices ranging from N669.09 to N700.06 on a lower landing cost purchase price to as high as N683.29 and N714.29 on a higher landing cost purchase price.
The projections of crude oil prices reaching $85 per barrel by year-end, coupled with the instability of the Naira against the Dollar, may result in further hikes in petrol pump prices.
Meanwhile, oil marketers claim that once local refining is fully operational, the cost of petrol will be reduced by at least N70 a litre.
National Controller Operations for the Independent Petroleum Marketers Association of Nigeria, Mike Osatuyi, disclosed this when discussing the advantages of the Federal Government’s investment in working refineries, on Wednesday.
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Posted by News Rangers
on Aug 4 2023. Filed under Business, National.
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