“Motorists and passengers have expressed outrage at the government’s decision to increase the price of petrol.” This is the news from Kenya… and Nigeria if you consider Friday’s incident.
The Petroleum Products Pricing Regulatory Agency (PPPRA) published a petrol pricing template on its website on Thursday, March 11, where it pegged the recommended retail price at between N209.61 and N212.61 per litre.
The ex-depot price, which is the rate marketers get the product, was fixed at N206.42.
The federal government and Nigerian National Petroleum Corporation (NNPC), however, assured Nigerians that there would be no increase in the price of petrol in March.
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The PPPRA subsequently deleted the template from its website.
Checks by TheCable showed that the increase (or anticipated increase) in the price of petrol is not peculiar to Nigeria.
- United States of America (USA): Data obtained from the US Energy Information Administration(EIA) shows that the national average price of petrol has increased from $2.42 per gallon in February to $2.77 per gallon as of March 8 and $2.85 as of March 15.
- Kenya: The Energy and Petroleum Regulatory Authority (ERPA) has increased the prices of refined petroleum products every month since 2021 began. The agency increased the price of petrol from 115.18 Kenyan shillings per litre ($1.08) in February to 122.81 Kenyan shillings per litre ($1.12) in March. The prices of petrol and diesel were also affected.
- India: In New Dehli, the Indian capital, the price of petrol has increased from 89.54 rupees ($1.23) in February to 91.17 rupees ($1.26) in March.
- Ghana: Nigeria’s West African neighbour has also witnessed an upward movement in petrol price. The retail price of petrol has been adjusted five times since 2021 began. A litre of petrol cost 4.94 Ghanaian cedis ($0.86) per litre on February 3, 2021; the price increased to 5.47 cedis ($0.95) by March 3.
However, the price of petrol has remained unchanged in Nigeria at N162 per litre ($0.33) since December.
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Why is the price of petrol increasing?
In three simple words — crude oil prices.
In the US, the price of crude oil forms 52 percent of the final price of the refined petrol
In March 2020, Nigeria adopted a price modulation policy where international crude oil prices and associated landing costs in Nigeria are used to determine the retail price of petrol.
During the thick of the pandemic in 2020, crude oil prices crashed to as low as $26 per barrel resulting in a drop in petrol price in Nigeria.
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At the time, the petrol price was reduced from N145 to N125 per litre as crude oil was sold for about $26 per barrel and reviewed downwards to N123.50
The N162 pump price was set when crude oil traded just above $43 per barrel.
Goldman Sachs Commodities Research recently projected that the price of Brent crude will hit $75 by the second quarter and $80 by the third quarter of 2021.
If this happens, an increase in the price of petrol is almost inevitable — except the government resumes subsidy payment.
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Citizens react
Fuel prices hiked:
Uproar after EPRA announces latest increase in fuel prices. Petrol, diesel & kerosene up by Sh7.63, Sh5.75 & Sh5.41 respectively.
AdvertisementODM opposes rise in fuel prices citing state of economy #SundayLive pic.twitter.com/Wyj1xXRzKh
— Citizen TV Kenya (@citizentvkenya) March 14, 2021
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The astronomical rise of fuel price in Kenya as a litre of petrol and diesel now cost Sh122.81 and Sh107.66 respectively in Nairobi will force many to normalise walking. #AWalkingNation underway! pic.twitter.com/zzp2pUW4sw
Advertisement— Muhammad Ali (@Abikar114) March 14, 2021
Hey @POTUS your policies have caused gas prices to go through the roof. When @DonaldJTrumpJr dad was president the cost to fill my tank was about $65.00. You need to fix this mess now. You’re killing the economy. pic.twitter.com/gS4NVd6JCp
— Brent Perry (@perrybrent) March 16, 2021
Biden is now planning a tax hike as if the prices of gas soaring and the food prices going up weren’t enough.
The middle class is getting HAMMERED right now!
— Lauren Boebert (@laurenboebert) March 15, 2021
46% of Indias population make less than Rs 250 per day. When petrol/diesel prices rise most necessary goods become costlier. People supporting oil price in India are either illiterate or inhuman.
— GANN TRADER (@GANNTRADER2) March 15, 2021
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