According to reports from energy policy analysts, the combination of high Forex and lack of funds might drive the price of petrol to N1,000 per litre on or before December 2023.
The report notes that this will be spearheaded by the lack of access to funds and volatile Forex, which will drive the cost of commodities through the roof in the coming months.
Currently, only a few marketers are importing fuel into the country. The Nigeria National Petroleum Corporation Limited (NNPC), which solely imported the product, is now publicly owned and would sell the petrol commercially to marketers.
Currently, NNPC is selling petrol to marketers at N500 per litre against the N488 it started selling after President Tinubu announced the subsidy removal on May 29th, 2023.
Despite the claims by NNPC that the hike in the price of fuel is due to market forces, analysts are of the belief that it’s more of a product scarcity than market forces.
Speaking on the matter, energy policy analyst Michael Uwakwe told Legit.ng:
“Currently, we do not have any records that NNPC brought in any new products since May when the announcement to remove subsidy was made by President Tinubu. We never read anywhere that NNPC brought in new supplies since May this year. The company has been running and selling to marketers the old products it had in stock before the subsidy was removed. This is an insult to Nigerians because NNPC presumably bought the product with money budgeted for subsidy by the previous administration. When the new government announced the end of subsidy, it began to sell the same product at an exorbitant cost.”
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