Marketers have dismissed fears that the recent increase in crude oil price to $94 will lead to a hike in the price of Premium Motor Spirit (PMS), also known as petrol.
POLITICS NIGERIA reports that following the removal of fuel subsidy in May, the global price fluctuations of PMS have impacted its local pricing within the country.
However, according to marketers, there has been no announcement by the Nigerian National Petroleum Company Limited (NNPCL) for a price increase.
Marketers have explained that the price of crude oil and the exchange rate account for over 80% of the cost of petrol.
The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Okoronkwo, described the anxiety as mere speculation, adding that the government may have stored products that could last till December.
On his part, the Managing Director of 11plc (formerly Mobil Oil Nigeria Plc), Adetunji Oyebanji, said that given the price of crude refined gasoline and exchange rate, the current prices are not reflective of the market.
He added that the subsidy on PMS is considerably lower and that the issue must be wisely tackled due to its impact on the economy.
