- Okoronkwo emphasized that market forces, rather than government determination, now dictate pump prices following the removal of fuel subsidies
- The current exchange rate of the Naira to the US Dollar is at N782.38/$1 in the official market and a higher rate of 910/$1 in the parallel market
As long as the US Dollar maintains an upward trajectory in the foreign exchange market, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has indicated that the cost of Premium Motor Spirit (PMS), commonly referred to as fuel, will persistently climb.
Chinedu Okoronkwo, the National President of IPMAN, shared this perspective with reporters when addressing the rumors surrounding potential additional increases in fuel pump prices.
The head of IPMAN emphasized that the price of fuel will continue its ascent as long as the dollar sustains its upward movement in the forex market.
He said: “Nigerians should understand that with fuel subsidy removal, the government is no longer determining pump prices but the market forces. The product is bought in dollars. The dollar is around 890/$1 now. As the dollar climbs, fuel pump prices will continue to go up”
As a solution, he urged the government to double up efforts to make Compressed Natural Gas available for Nigerians.
“Government should make conscious efforts towards making CNG available for Nigerians”, he stated.
The Naira experienced a further decline against the US Dollar, reaching an exchange rate of N782.38/$1 on Wednesday in the official market. In contrast, the parallel market saw the dollar trading at a higher rate of 910/$1.
As a result of these developments, it is anticipated that the pump price of fuel could surpass N617 per litre.
Approximately three weeks ago, fuel marketers had raised the fuel pump price from N539 per litre to a level exceeding N600 per litre.
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