Why FG increased petrol pump price twice in one month–AbeyaNews findings

* PMS now sells for  N151.56 up from NN148.50 in August


Cash crunch arising from dwindling sales from crude oil and government’s aversion for further borrowing amid public skepticism over loans already obtained, may have pushed the government to increase ‘fuel price’ as a means of raising cheap, fast money from the Nigerian public, AbeyaNews has gathered.

There are indications that labour was privy to the new price arrangement, a reason it neither attacked the last increase in August nor this one, but focused instead on the planned tariff increase by NERC for power consumers.

Even then, sources further said, labour isn’t about to upset the apple cart for the Buhari Administration, a position taken by its leadership in total fidelity to regional interests, what with a Northerner as President.

AbeyaNews gathered that with the Covid-19 pandemic still ravaging the developed economies of the West, thereby making it difficult for Nigeria to sell its oil in the international market at good prices and quantities as was the case before Covid-19 outbreak, the federal government’s sources of revenue have all but dried up, necessitating inward adjustments to enable government raise money to run its affairs.

Petrol price increase was the easiest and fastest way for the government to raise money, especially now that Labour, apparently unwilling to confront government over what many have come to perceive as the Buhari government’s anti-people policies and actions, freely allows the government to get away with such actions.

The Pipeline and Product Marketing Company  (PPMC) announced the increase in the price of petrol to N151.56 per litre earlier yesterday.

 Pipelines and Product Marketing Company (PPMC) is a subsidiary of the Nigerian National Petroleum Corporation (NNPC).

The increase was confirmed in a statement sighted by our correspondent and signed by, D.O Abalaka of the PPMC and entitled RE: Product Pricing and dated September 2, 2020.

AbeyaNews recalls that the petrol pump price in August was N148.50

Said PPMC in the statement: “Please be informed that a new product price adjustment has been effected on our payment platform. To this end, the price of Premium Motor Spirit (PMS) is now N151.56k per litre.”

It added that the new price took effect from Wednesday, September 2, 2020, that is, yesterday.

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