The Independent Petroleum Marketers Association of Nigeria (IPMAN) has affirmed that the cost of Premium Motor Spirit, commonly known as fuel, will continue to rise as long as the US Dollar maintains its ascent in the foreign exchange market.
In an exclusive conversation with DAILY POST, Chinedu Okoronkwo, the National President of IPMAN, addressed the speculation surrounding potential further fuel pump price hikes.
Okoronkwo emphasized that the trajectory of fuel prices will be tied to the trajectory of the US Dollar’s rise in the forex market.
Okoronkwo emphasized that the era of government-determined pump prices has concluded with the removal of fuel subsidies, leaving market forces in control. He highlighted that as the dollar’s value remains high, fuel pump prices will inevitably climb.
To counter this challenge, Okoronkwo urged the government to intensify efforts to ensure the availability of Compressed Natural Gas (CNG) for Nigerians. This, he believes, can provide a solution to the growing concerns over fuel prices.
He stated, “The government should take proactive measures to ensure CNG accessibility for the people.”
The Nigerian Naira’s exchange rate against the dollar has seen a further decline, reaching N782.38/$1 in the official market. On the parallel market, the dollar is trading at 910/$1. Consequently, the anticipated pump price of fuel is projected to surpass N617 per litre.
Recalling recent events, it was just three weeks ago that fuel marketers elevated the pump price from N539 per litre to over N600 per litre.