The effect of rise in global crude oil prices has led to an increase in the landing cost of Premium Motor Spirit (petrol) imported into Nigeria to over N282 per litre.
The rise means increased subsidy as the pump price of the product remains steady at N162-N165 per litre.
The landing cost of the product rose to N282.29 per litre on January 20 as the international oil benchmark, Brent crude, jumped to $89.75 per barrel that day from $77.24 per barrel on December 31, 2021.
Brent rose further on Wednesday to $90.22 per barrel as of 5.19 pm Nigerian time, its highest level since 2014.
The sharp rise in global oil prices to record highs has pushed the subsidy cost being incurred by the Federal Government.
Marketers have increased the price of Automotive Gas Oil, also known as diesel, to N355-N360 per litre.
Recall that diesel price increased further to N350 per litre in some filling stations in Lagos in January and that Mobil filling station, along the Lagos-Ibadan Expressway, sold the product for N360 per litre, while Oando, ENYO and Fatgbems filling stations sold for N355.
