The crises hampering operations in the oil sector linger as Nigerians continue to lament the ripple effect of high pump prices.
Five months after the Bola Tinubu administration removed subsidy on petrol, major crises bedeviling the petroleum sector continue with ripple effects on the livelihood of Nigerians.The Nigerian government had for decades subsidised and fixed retail prices of petroleum products.
Following the announcement, the Nigerian National Petroleum Company Limited directed its outlets nationwide to sell fuel between N480 and N570 per litre, an almost 200 per cent increase from the initial price below N200, leading to a significant increase in transportation fares and prices of goods and services.
He noted that despite the removal of petroleum subsidy, local refining remained the best option for the country to guarantee energy security, considering the huge foreign exchange implication of the imported products. Since Nigeria depends on imported refined products, the exchange rate is a key determiner of the prices they are sold to consumers.Nigerians that there would be no further increase in the pump price of petrol, despite the deregulation of the product.
Meanwhile, on 6 October, the National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria , Festus Osifo, insisted that the Nigerian government hadMr Osifo, who is also the president of the Trade Union Congress , one of Nigeria's two largest workers union coalitions, while featuring on a Channels Television programme, Politics Today, said due to the cost of crude oil in the international market and the exchange rate, the government still pays subsidies on petrol.
In the midst of the uncertainties, many of the crises hampering smooth operations in the oil sector linger as Nigerians continue to lament the ripple effect of skyrocketed pump prices.
"Depot owners are so terribly affected by the increasing cost of crude oil and exchange rate, to the extent that many depots are practically deserted as their owners are unable to secure bank loans to fund their business due to high-interest rates. Brent crude oil futures were down $2.02, or 2.22 per cent, to $88.90 a barrel at 1228 GMT, while U.S. West Texas Intermediate crude fell $2.10, or 2.35 per cent, to $87.13 per barrel, Reuters reported.There was a problem processing your submission. Please try again later.
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