BREAKING: Federal Government Increases Fuel price. The Federal Government of Nigeria (FG) has announced the start of talks with trade union representatives on how to increase the fuel freight from N7.51 to N9.11 per liter.
The plan calls for an increase of 21.30 percent in the cost of petrol.
The announcement was made after a meeting of the National Association of Road Transport Owners at the Zuma Rock Resort, on the Abuja-Kaduna highway, The Punch reported.
The Executive Secretary of the Petroleum Equalisation (Management), Ahmed Bobboi, said the commission was awaiting approval from the federal government before implementing the new freight rate of N9.11 per liter.
He said the Federal Government was waiting on the government-appointed committee on petrol and electricity prices to revert with its decision on the issue
Asked to comment on the increase, NNPC chairman Mele Kyari, who was represented by the commission’s finance officer, Umar Ajiya, said the government would announce the increase on a pricing template.
He also pointed out that the ex-depot for collection include the statutory charges of bridging fund, maritime transport average, National Transport Allowance and administrative charges.
The federal government had a few months ago announced its plans to stop the subsidy payment regime as they said that the downstream sector of the oil industry will be fully deregulated. The government said that the prices of all petroleum products which includes fuel would be fully determined by market forces, following the removal of the existing cap on fuel prices.
PPPRA had stated that it arrived at the new price regime after taking into consideration the operating costs of the oil marketers.
It can be recalled that at the beginning of the month of June, there was a minor adjustment of fuel price as it was fixed at N121.50 per litre from N123.50 per litre in May. The new price in July represents an over N20 per litre increase when compared to the price last month.