Fuel Price Hike Looms As Crude Oil Hits $71/Barrel

There will be more money for the 2021 budget implementation as the crude oil price on Monday hit $71/ barrel which doubles the $30 benchmark.

But the spike in crude oil price implies that Nigerians will pay more for a litre of petrol as the landing cost will also rise, experts have said.

Brent crude on Monday rose above $70 a barrel for the first time since the COVID-19 pandemic began; while U.S. crude touched its highest in more than two years following reports of attacks on Saudi Arabian oil facilities.

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Yemen’s Houthi forces had fired drones and missiles at the heart of Saudi Arabia’s oil industry on Sunday, including a Saudi Aramco facility at Ras Tanura vital to petroleum exports in what Riyadh called a failed assault on global energy security.

Nigeria had witnessed scarcity of petrol in the last two weeks with the Nigerian National Petroleum Corporation ruling out any price increase this month.

The NNPC had said it had enough stock of petrol to keep the nation well supplied for over 40 days and urged motorists to avoid panic buying while ruling out any increase.

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