The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a statement suggesting that the cost of Premium Motor Spirit (PMS), commonly known as petrol, might witness an uptick, potentially reaching ₦750 per litre.
Chinedu Ukadike, the national spokesperson for the association, conveyed this information during a discussion in Abuja. Ukadike highlighted that the Nigerian National Petroleum Company Limited (NNPCL) presently maintains an ex-depot price of ₦587.7. However, should NNPCL make adjustments to its pricing, it’s expected that “other marketers will follow suit.”
Furthermore, IPMAN has appealed to the government to devise strategies to stave off any further depreciation of the naira.
Ukadike explained, “Considering the exchange rate has shifted from N750 to now surpassing N900, which represents an increase of nearly 20%, a 10% surge is projected. Therefore, a calculation based on this places the potential price around ₦750 per litre.”
“Presently, the parallel market lists the dollar at N910. Consequently, this will lead to a rise in the landing cost of PMS, inevitably causing an escalation in the domestic price of the product.”
“It’s imperative for the populace to grasp that the government is no longer subsidizing and local production of petrol within Nigeria is absent. If local production existed, it could have mitigated the impact of an excessive influx of naira vying for the dollar. This would have provided some relief and offered support to the naira.”
“Unless the government intervenes decisively, the naira could approach the N1,100 mark against the dollar by year-end, contributing to severe inflationary pressures for Nigeria.”
Subsequent to the removal of fuel subsidies by the Federal Government, the pump price of petrol has risen twice, relinquishing control to market dynamics for price determination.