By Oluwatosin Maliki
Oil marketers on Sunday expressed concerns over the weakening of the Naira against the United States dollar in recent months, coupled with the escalating crude oil prices. These factors are potentially poised to result in an increase in the pump price of Premium Motor Spirit, commonly referred to as petrol.
Recall that Quest Times previously reported on Thursday that the Naira had depreciated to N950 per dollar due to worsening forex scarcity. The report highlighted that the Naira experienced further devaluation against the dollar the day before, on Wednesday, after closing at 950 Naira to the dollar in the parallel market.
Likewise, Bureau de Change operators observed that the Naira, which had closed at 930 Naira to the dollar at the end of Tuesday’s trading session, was being bought and sold at rates of 935 Naira and 950 Naira to the dollar on Wednesday.
Join Our WhatsApp Channel for Exclusive Stories, News Reports, and Engaging Content. {Click Here}
ALSO READ:Â I Beg All Spiritual And Religious Leaders To Forgive Obasanjo – Wife Appeals
Dealers in the downstream oil sector elaborated that the cost of crude oil and the exchange rate of the dollar collectively accounted for over 80 percent of the cost of PMS.
The price of Brent crude, the global benchmark for oil, surged to $94 per barrel on Sunday, marking the highest point in 2023. At the beginning of the year, oil prices stood at approximately $82 per barrel, dipped to $70 per barrel in June, but have since traded above $92 per barrel in the past week.
Despite the Federal Government and the Nigerian National Petroleum Company Limited’s assertions that petrol subsidies have been eliminated following the deregulation of the downstream oil sector, operators insisted on Sunday that the government was effectively implementing a quasi-subsidy.
