The Minister of Petroleum Resources (State), Mr Timipre Sylva has explained the recent increase in the price of petrol, admitting that the deregulation of the petroleum subsector will be difficult for a while but pay off on the long run.
Mr Timipre said this on Thursday during a briefing in Abuja and noted that the government can no longer control the price of the product.
According to him, the Nigerian government spends over a trillion naira yearly as subsidy, explaining that the high cost forced the government to allow market forces to determine the prices of the product.
The former Bayelsa Governor noted that the current price of petrol is a reflection of the global crude oil price.
Petrol stations across the country increased the price of Premium Motor Spirit, popularly known as petrol, on Thursday.
The prices ranged from between N155 and N162 per litre, Channels Television correspondents across the country observed.
The increase was triggered after the product’s depot price was increased on Wednesday from N138.62 to N151.56, according to an internal memo from the Pipelines and Product Marketing Company (PPMC).
The PPMC is a subsidiary of the Nigerian National Petroleum Corporation (NNPC).
According to the memo, the new product price adjustment will take effect from September 2.
However, it did not state the Expected Open Market Price of the commodity.
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