The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a cautionary statement, hinting at a possible hike in the pump price of Premium Motor Spirit (PMS) to approximately N750 per litre. The association's national spokesperson, Chinedu Ukadike, conveyed this prediction during an interview with Tribune in Abuja.
Ukadike noted that the Nigerian National Petroleum Company Limited (NNPCL) is currently maintaining its ex-depot price at N587.7. However, he indicated that if the NNPCL were to adjust its pricing, other fuel marketers might follow suit in order to align with the prevailing market dynamics.
IPMAN also used the opportunity to call upon the government to implement strategic measures to prevent the further depreciation of the naira's value.
Ukadike stated, "There will be a 10 per cent increase because the dollar was N750, now is over N900 that is almost a 20% increase if you apply this, you should be talking about N750/litre. Currently, the dollar rate at the parallel market as of today is N910 which also means that the landing cost of PMS will increase and the domestic price of PMS will also increase."
The spokesperson emphasized the lack of government subsidy and the absence of local production as contributing factors to the potential price surge. He outlined the potential repercussions if corrective measures are not implemented: "If the government does not do something drastically, before the end of this year, Naira may be close to N1,100 per dollar and this will be a serious inflation for Nigeria."
Amid these concerns, the pump price of PMS has seen two increments since the Federal Government's removal of fuel subsidy, a move that has shifted pricing dynamics to market forces rather than state intervention. The situation underscores the intricate relationship between economic conditions, market trends, and government policies in shaping fuel prices.
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