ALERT: Petrol price MAY go up soon

The federal government may soon effect an upward review in the pump prices of premium motor spirit (PMS), popularly known as petrol.

PUNCH quoted oil marketers as attributing this to the recent increase in the cost of crude oil at the international market.

The newspaper said the marketers also complained about the challenge in sustaining the improvement in the supply of petrol across the country.

Lawal Taofeeq, corporate affairs manager of Nipco Plc, a renowned oil marketing firm, advised government to manage petrol subsidy properly in order to ensure adequate sustenance of the present improvement in fuel supply.

He noted that the marginal rise in the price of crude oil could force the government to review the pump price of petrol upwards, particularly should the government insist on not paying petrol subsidy to oil marketers.

“We’ve started importing products. But on sustenance, it depends on how the government handles the issue of subsidy. You know subsidy on petrol has returned and its management will go a long way in affecting fuel supply,” he said.

“Before, there was no subsidy on petrol. But now, considering the rise in crude oil price, there is subsidy despite the fact that the official pump price hasn’t been changed. So, if the subsidy issue is not managed properly, marketers may not want to import the product unless they are sure of their money.

“The government has been using the price modulation technique, and as crude oil price is going up, it will be adjusting the pump price of petrol. Any moment from now, there may be an upward review in the pump price of petrol to take care of the rise in the price of crude oil in the international market.”