The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said the pump price of Premium Motor Spirit (PMS), popularly known as petrol, could rise to as high as N750 per litre by May 2024.
Chinedu Ukadike, the association’s national spokesperson, disclosed in Abuja while speaking with the press.
He revealed that the Nigerian National Petroleum Company Limited (NNPCL) presently keeps its ex-depot price at N587.7. However, if the NNPCL adjusts its prices, “other marketers will do the same.”
Also, IPMAN urged the federal government to deploy strategies to arrest naira devaluation against other global currencies.
Ukadike said, “There will be a 10 percent 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.
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“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.”
The pump price of the product has increased twice since the Federal Government removed fuel subsidy, hence market forces are now allowed to determine prices.