Nigerians are concerned about a potential increase in the price of Premium Motor Spirit, more commonly known as gasoline, at the pump due to the decline of the naira against the US dollar and the recent increase in crude oil prices worldwide.
Although the Nigerian National Petroleum Company Limited and other oil marketers have not declared an increase in the price of gasoline, they have acknowledged that the lack of foreign currency and the rise in the price of crude oil were the two main factors influencing the price of PMS.
After President Bola Tinubu removed the PMS subsidy, the price of gasoline increased from N198 per litre in May to over N500 per litre in June.
As a result of the naira’s decline against the dollar, there were worries that the price might increase even more in August.
In July, the cost increased once more to over N600/litre.
In the parallel market on Thursday, the naira fell below N900 to the dollar. Additionally, at the authorized Importers and Exporters forex window, it decreased in value relative to the US dollar.
Brent, the global standard for crude oil, was also traded on Thursday for about $87 per barrel. It recently traded for less than $80 per barrel.
Collins Nnabude, an Abuja resident, said: “When you consider the effect on petrol price in Nigeria, the crash of the naira against the dollar and the recent rise in crude oil price are making one nervous. This month, fuel costs are most likely to increase once more. “.
The likelihood of a further increase in gasoline prices this month has also been confirmed by oil marketers.
The price of gasoline in our retail outlets will keep rising as long as the naira is losing value against the dollar, according to Billy Gillis-Harry, president of the Petroleum Products Retail Outlets Owners Association of Nigeria. “.
He urged Tinubu to see to it that the refineries in Nigeria were put back into operation.
He said, “We have asked the President to declare a state of emergency on our refineries to hasten their repairs.
“That is the only surefire method to use in order to be able to predict the price of petroleum products, as every PMS you purchase in a retail store at the moment is dollarized. “.
The National President of the Independent Petroleum Marketers Association of Nigeria, Chinedu Okonkwo, also commented on the development, stating that the PMS price would continue to fluctuate despite the downstream oil sector’s complete deregulation.
“The cost of gasoline would either rise or fall in an environment of deregulation and absence of subsidies. But if you wanted to make a profit, you would lose out to those who imported and sold at lower prices. “.
The Federal Government may also step in, according to oil marketers, as both the price of crude oil and the ex-depot price of gasoline have been steadily increasing.
President Tinubu had pledged to step in if necessary, according to Mike Osatuyi, National Controller Operations for the Independent Petroleum Marketers Association of Nigeria.
“First of all, we must thank President Tinubu for eliminating fuel subsidies, as the nation would have been heavily burdened by this point,” he said.
We can now see that the amount of gasoline they claimed we used to consume had decreased due to the rising cost of crude oil. At the same time, we can see that the price of crude oil is rising, which means that Nigeria would have more money on top of the money the nation has saved from the removal of subsidies. Then, because there is more money in the country, we must pay as the price of gasoline continues to rise. “.
According to the depot, the ex-depot price is currently between N585 and N590 per litre, and it will either increase or decrease depending on the price of crude and the exchange rate.
“However, the President has stated that, if necessary, there will be interventions. We therefore assume that they are keeping an eye on the situation as it develops.
