Petrol Price Hike Imminent as Crude Oil Price Rises to $84/Barrel, Nigeria Records 240 Oil Theft in One Week
The international price for crude oil increased to $84 per barrel on Wednesday, July 26, 2023
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Oil marketers say the increase may trigger another hike in the price of petrol
The development comes as NNPC said Nigeria recorded 240 incidents of crude oil theft in one week
According to reports, the international benchmark for crude oil increased to a high of $84 per barrel on Wednesday, heightening speculations that Nigeria may see another petrol price increase in the coming weeks.
Crude oil sale is a significant determinant of refined petroleum product prices. It hovered between $75 and $78 per barrel for over a month but peaked on Wednesday, July 26, 2023, rising to similar highs last week.
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Oil Marketers mull another petrol price hike amid Forex volatility
Oil marketers in Nigeria have revealed that the rise in crude oil prices and exchange rate increase might cause further hikes in petrol prices.
Punch reports that the Nigerian National Petroleum Company Limited (NNPC) has maintained its view on selling petrol at the market price.
NNPC remains the major exporter of petrol despite other marketers commencing the product importation.
Meanwhile, NNPC has said that Nigeria recorded 240 incidents of crude oil theft between July 15 and July 21, 2023.
Nigeria records 240 incidents of crude theft in one week
NNPC disclosed this via its Twitter account, stating that the war against crude oil theft still exists across the Niger Delta region, especially in Rivers, Bayelsa and Delta states.
The company revealed that it found 93 illegal connections and disconnections and that repairs are ongoing.
It also revealed that 69 illegal refineries were discovered and destroyed within the period.
NNPC also recorded 27 cases of pipeline vandalism which were also fixed.
Oil marketers demand increase in petrol prices as Ghana, Benin, Togo, others sell N1,000/litre
Legit.ng reported that Oil marketers insist that the current petrol prices in Nigeria do not reflect the market realities, saying that a further price review will make them break even.
The development comes after petrol prices were increased twice in two months from N189/liter to N500/liter and, recently, from N537 per litre to N617/ litre across Nigeria.
Punch reports that the former Chairman of the Major Oil Marketers Association of Nigeria and CEO of 11 Plc, Tunji Oyebanji, said the review will reflect current market realities.
Source: Legit.ng
