Forex rate to determine pump price of petrol – IPMAN, warns of fresh hike
Independent Petroleum Marketers Association of Nigeria (IPMAN) said the price of Premium Motor Spirit (PMS), also called petrol, would continue to be dictated by the exchange rate of the Naira with the US Dollar in the in the foreign exchange market.
National President of IPMAN, Mr. Chinedu Okoronkwo, disclosed this amid fears of fresh hike in the pump price of petrol in the country following the staggering exchange rate of the dollar in the Nigerian forex market.
“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”, Mr. Okoronkwo stated.
Naira dropped further to the dollar, exchanged at N782.38/$1, Wednesday at the official market. But, at the parallel market dollar is enchanted at N910/$1.
Consequently, the pump price of the product is expected to exceed N617/per litre.
Only recently, petroleum products marketers had raised the pump price of petrol to N617 per litre on the back of the dollar exchange at N700/$1.
