Oil Hits $68, Boosts Nigeria’s Revenue, But Petrol Imports Hurt Finances

The price of crude oil rose further Thursday exceeding $68 per barrel, its highest since May 2015, supported by unrest in Iran and raising concern about risks to supplies, cold weather in the United States boosting demand, and output cuts led by the Organisation of Petroleum Exporting Countries (OPEC).

The development, which will increase the Nigerian government’s oil revenues to fund the 2018 budget, will however, hurt the country’s finances via petrol imports and mounting demands by oil marketers for subsidy payments.

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu told THISDAY in a recent interview that the recent petrol scarcity in the country originated from the high cost of crude oil in the international market, saying that while the country wants more revenues from its crude, it is difficult for petrol to be delivered at the fixed price of N145 a litre at the same time.

THISDAY, January 6, 2018

 

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