The Premium Motor Spirit (PMS) pump price may increase to about N750 per litre, according to the Independent Petroleum Marketers Association of Nigeria (IPMAN).
Speaking in Abuja, the association’s national spokesperson, Chinedu Ukadike, conveyed this.
He cited the Nigerian National Petroleum Company Limited (NNPCL), which keeps its ex-depot pricing at N587.7 at the moment. If the NNPCL, however, changes its pricing, “other marketers will do the same.”
Additionally, IPMAN urged the government to put plans in place to stop the naira from depreciating any further.
Ukadike said, “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.
“People should understand that government is no longer subsidizing and there is no local production in Nigeria. Had there been local production, it can be able to cushion the effect of too many naira pursuing the dollar. It would have helped us and saved the naira.
“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.”
Since the Federal Government removed fuel subsidies, the product’s pump price has doubled, therefore market forces are now permitted to determine prices.
Ada Peter
