Fuel Scarcity: Rise In Petrol Price

Further rise in petrol price due to scarcity is now a major concern for Nigerian citizens’ the average pump price of petrol, across the country in the month of November was N115.35 per litre, up from N93.5.

This is contained in the monthly PMS Price Watch of the National Bureau of Statistics, NBS, released yesterday. The survey does not cover black market.

Surprisingly, the report shows that highest pump prices were recorded in the oil producing Niger Delta states while lowest pump prices were recorded in the North and South western states.

In a state-by-state report, average pump prices was highest in Akwa Ibom State which recorded N187.5 per litre followed by Abia at N146.6, Cross River at N140.4 and Rivers at N139.6 per liter.

The lowest average pump price was recorded in Bauchi State at N91.3 per litre followed by Katsina and Ogun States at N91.5 each.

On the country-wide trend, the current report shows that the average pump price at N115.35 has risen by 23.4 per cent month-on-month, the highest rate so far this year, compared to 13.66 per cent recorded during the petrol scarcity of the last days of ex-president Goodluck Jonathan’s regime.

The current fuel scarcity started during November under review following inability of petroleum marketers to continue supply due to huge outstanding subsidy payment the Federal Government was owing them and also lack of clarity of policy on subsidy payments.

Over N500 billion outstanding subsidy claims are still hanging as at last weekend even after the approval of N413 billion payment by the government last week.

Their concerns appeared worsened by the content of the 2016 Medium Term Expenditure Plan, MTEP, approved by the Federal Executive Council, FEC, last week which shows that subsidy funding was not covered adequately. The 2016 budget would be extracted from the approved MTEP.

Consequently, petrol stations and dealers have been very cautious in the trade and supply at subsidized rate of N87 per litre.