The federal government of Nigeria through the Petroleum Products Pricing Regulatory Agency has increased the pump price of petrol to N143.80 per litre from N121.50 per litre.
The new price was announced by the secretary of the regulatory agency Abdulkadir Saudi in a circular dated July 1, 2020.
The circular states “Please recall the provision for the establishment of a monthly price band within which Petroleum Marketers are expected to sell PMS at the retail stations, based on the existing price regime.
After a review of the prevailing market fundamentals in the month of June and considering Marketers’ realistic operating costs, as much as practicable, we wish to advise a new PMS pump price of N140.80 to 143.80/Litre for the month of July 2020,”.
This increase in petrol price expresses what subsidy removal is all about.
When oil sold for about $20 per barrel and pump price was reduced to N123. Now oil price has risen over $40 per barrel and pump price has increased.