Nigerians have been asked to brace up for another increase in the pump price of Premium Motor Spirit otherwise known as petrol, following the current fluctuations in the exchange rate in the country.
Recall that last week, the local currency crossed the N900/dollar ceiling, with the naira selling at over 945/dollar at the parallel market as of Friday.
The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, while speaking with newsmen on Sunday, explained that the price of petrol was now driven by the fluctuations in forex, hence Nigerians should expect a hike soon.
Ukadike said, “Once there is a slack in the naira against the dollar, there is going to be an effect. The demand and supply of forex is a key factor. We should also understand that it is not only petroleum products that use forex.
He further stated that oil marketers were still sourcing dollars from the parallel market, as the CBN’s Importers and Exporters official window was illiquid.
“Nigerians should brace for a price regime of between N680 to N720 if the exchange rate stays around N910 to N950/$, but the price is going to hit N750 once the dollar rises to N1,000,” Ukadike noted.
Other oil dealers in separate interviews with newsmen, also indicated that PMS price hike was imminent unless the local currency appreciates in the coming weeks.
According to them, “Now that the dollar is hitting N910 to N940, and approaching N1,000, you should expect to buy PMS at the rate of N750/litre.
“It is simple mathematics, once the dollar is going up, have it in mind that the prices of petroleum products would definitely increase because the products are dollar-driven.”
The pump price of petrol has continued to skyrocket since May 29, 2023, when President Bola Tinubu announced the removal of subsidy on fuel during his inauguration address.
