The rising cost of crude oil, along with the naira’s depreciation against the US dollar, may lead to an increase in the price of Premium Motor Spirit, also known as petrol, according to oil marketers on Sunday.
It was also learned that the sudden spike in crude oil prices to around $94/barrel, as well as the forex crisis, had justified a gradual increase in the amount covertly spent by the Federal Government as a petrol subsidy.
According to downstream oil dealers, the cost of crude oil and the dollar exchange rate accounted for more than 80% of the cost of PMS.
Brent crude, the global oil standard, hit $94 per barrel on Sunday, the highest level since 2023. Oil began the year at around $82/barrel, dropped below $70/barrel in June, and has recently traded around $92/barrel.
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