BREAKING : Petrol pump price may rise to 750 Naira per litre- IPMAN

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has signaled the possibility of a significant increase in the pump price of Premium Motor Spirit (PMS), which could reach approximately N750 per litre. Chinedu Ukadike, the national spokesperson for the association, conveyed this information during an interview with Tribune in Abuja.

Ukadike explained that the Nigerian National Petroleum Company Limited (NNPCL) currently maintains its ex-depot price at N587.7. However, if the NNPCL were to adjust its pricing, it would likely trigger a chain reaction among other fuel marketers, leading to similar price adjustments.

Moreover, IPMAN has called on the government to implement strategies aimed at preventing further depreciation of the naira. Ukadike emphasized the economic factors at play, particularly the exchange rate of the Nigerian currency against the dollar, which has experienced a significant increase. He pointed out that the dollar rate at the parallel market had surged to N910, which directly impacts the landing cost of PMS and, consequently, the domestic price.

Ukadike highlighted the current scenario, where the government is no longer subsidizing fuel, and local production in Nigeria is insufficient. This combination of factors has created a challenging environment, with a surplus of naira chasing after the dollar. He emphasized that if no significant actions are taken by the government, the naira’s value could decline further, potentially reaching a concerning rate of N1,100 per dollar by the end of the year, leading to severe inflationary pressures in the country.

The context for these potential price increases stems from the Federal Government’s decision to remove fuel subsidy, allowing market forces to determine fuel prices. Consequently, the pump price of PMS has already seen two increases. The economic dynamics, coupled with the absence of local production and the naira’s vulnerability, have created a situation where the pump price of PMS is highly susceptible to market fluctuations.

IPMAN’s warning of a potential increase in the pump price of PMS to around N750 per litre reflects the intricate interplay of economic factors, particularly the exchange rate of the naira against the dollar, and the absence of fuel subsidies. This situation underscores the need for the government to implement effective strategies to stabilize the economy, mitigate inflationary pressures, and ensure a reasonable fuel pricing mechanism for the citizens of Nigeria.