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As oil price looks up to $80pb, FG may break silence on new pump price soon

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Just as the rising oil price is moving close to $80 on US crude inventory drop Thursday, Nigerian petroleum industry observers have predicted that sooner than later, the federal government may eat its word and open up on new retail pricing template.

This is against the background of the surging landing cost of Premium Motor Spirit (PMS), popularly known as fuel.

Across the federation, fuel prices had been over and above the official pump price of N145 as rising oil prices have continued to push up landing cost over and above the official price of N133 to N171. Findings on Thursday showed that if oil prices steadies above N70 till next week, landing cost will hit N180, thus heating up the economy with imminent fuel scarcity.

Apart from the shocks that will eventually lead to fuel scarcity, observers say the emerging scenario may trigger inflationary effect that could weaken the Central Bank of Nigeria’s plan to lower interest as soon as possible, thus making the economy to slow down.

Oil prices rallied to a three-year high, boosted by a record 10th straight weekly decline in U.S.

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