Nigerians to expect fuel price hike in January 2017

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Nigerians are to expect an increase in fuel price come January 2017.  According to the Head of energy research, Ecobank, Oni Dolapo, the price of petrol might increase from N145 per litre to N165 per litre.

Oni says that the current price template is predicated on an Exchange Rate of N285/$ and Crude Oil price of $45 per barrel, and these have now been overtaken by an Exchange Rate of N305/$ and an Oil price of $55 per barrel.He adds that at some point, Petrol Importers start to buy New Cargoes, the NNPC is going to have to take the difference between the Ex-Depot and real price if it must maintain the Pump price at 145 per litre.

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This development will further weaken the country’s economy. As October 2016, Nigeria’s annual core inflation rate rose to 18.1 percent the price of imported goods increased to 21.1 percent from 19.2 and the cost of food increased by 17.1 % from 16.6 in September 2016.

Below is an image showing the price of fuel under previous leaders of Nigeria;

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