The Independent Petroleum Marketers Association of Nigeria has indicated that the price of Premium Motor Spirit, commonly known as fuel, is set to rise in tandem with the increasing value of the US Dollar in the foreign exchange market.
Chinedu Okoronkwo, the esteemed National President of IPMAN, conveyed this insight exclusively to DAILY POST in response to rumors of an impending surge in fuel pump prices.
Emphasizing the correlation between the ascending dollar and escalating fuel costs, Okoronkwo elucidated, “It’s imperative for Nigerians to grasp that with the removal of fuel subsidies, the government no longer dictates pump prices; instead, market dynamics come into play. Given that the product is procured using dollars and the dollar is presently valued at around 890 naira per dollar, any elevation in the dollar’s value will inexorably lead to a surge in fuel pump prices.”
In offering a potential resolution, he appealed to the government to redouble its efforts in ensuring wider access to Compressed Natural Gas (CNG) for the citizens. Okoronkwo asserted, “The government should proactively strive to ensure widespread availability of CNG among Nigerians.”
Meanwhile, the Naira’s value has further weakened against the dollar, with an official market exchange rate of N782.38 per dollar on Wednesday. Conversely, the parallel market has the dollar trading at an enchanting 910 naira per dollar.
Consequently, this shift is projected to push the pump price of fuel beyond the threshold of N617 per liter.