Fuel Prices Rises to 640 Naira per Liter Following Subsidy Removal

By Mercy Agok

The News: amidst subsidy removal, petroleum prices have risen from 557 naira to 640 naira per liter. 

  A circular released by the Reuters news agency reveals that the Nigerian national petroleum corporation updated the price of petroleum nationwide on Tuesday.

Overview: Almost two months after the president Bola Tinubu’s inaugural speech on May 29th, where he declared fuel subsidy in the nation, the prices of fuel skyrocketed to 557 naira per liter, leaving Nigerians devastated. However,  Nigerians are yet again faced with another shock as fuel prices rise to 640 naira per liter

The chief executive officer of the Nigerian national petroleum corporation Mela Kyari, in an interview with Arise News two months ago, explained that the current petrol pump prices is the reflection of the current market price of commodities in the country. Which means that prices of fuel will continue to fluctuate, depending on the market value.

In Addition, the national operation controller of the independent marketers association in Nigeria (IPMAN),  Mike Osayi, attributed the increase in fuel prices to three major reasons which include:

  • The recent increase in crude oil prices in the international market.
  • The high increase in currency change, from naira to dollar.
  • The cost of transporting fuel to distant states, which may apply to mostly countries in the far north and central north region.

Way out: stakeholders in the Nigerian energy sector have advised Nigerians to consider a new coping mechanism, which will entail change in lifestyle and creating other alternative energy sources.

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