Oil marketers forecast N900/liter as dollar rises to 990/1k in the Black market

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed the view that the pump price of petrol should be adjusted to fall within the range of N890 to N900 per litre. This suggestion is based on the devaluation of the Nigerian Naira against the United States dollar and the recent surge in global crude oil prices.

According to oil marketers, the ongoing foreign exchange crisis and the substantial rise in crude oil prices have rendered the current petrol price of N617 per litre unsustainable. They assert that the government has effectively reintroduced fuel subsidy, albeit quietly, to mitigate the impact of these economic factors.

Chinedu Ukadike, the National Public Relations Officer of IPMAN, emphasized the economic realities, stating that the devaluation of the Naira against the US dollar directly impacts the cost of imported petroleum products. He noted that the current exchange rate of almost N990 at the parallel market is a key determinant in the fuel pricing equation. With diesel already priced close to N1,000 per litre due to these factors, Ukadike argued that the retail price of petrol should be adjusted to approximately N890 to N900 per litre to reflect the market conditions.

Comparing international petrol prices, he highlighted that in the United States, the super product or petrol is sold at around $3.9, equating to approximately N3,000 per litre. Similarly, the premium product is sold at about $2.89, which is over N2,000 per litre. Considering these global benchmarks and aligning them with Nigeria’s forex rate, Ukadike suggested that the appropriate retail price for petrol in Nigeria should be around N900 per litre.

This perspective from IPMAN underscores the complexities of fuel pricing, especially in a nation heavily reliant on imported petroleum products and facing economic challenges related to currency devaluation and global market dynamics.