Nigerian Oil Marketers Warn of Potential Petrol Price Increase Amid FX Crisis.
Oil marketers in Nigeria are sounding the alarm that the cost of petrol might see another increase due to the ongoing foreign exchange crisis. Predictions suggest that prices could rise to approximately 720 naira per litre ($0.93; £0.73), up from the current average of $0.77. If this occurs, it would mark the third significant price hike since President Bola Tinubu assumed office in May.
The value of the naira has been on a downward trajectory in the foreign exchange market ever since the government unified exchange rates. Presently, the local currency is trading at an all-time high of 910-945 naira against the dollar on the parallel market.
The Independent Petroleum Marketers Association of Nigeria (Ipman) has expressed concerns that fuel prices could continue to escalate as long as the dollar remains strong in the foreign exchange market. The association’s president, Chinedu Okoronkwo, clarified that “with fuel subsidy removal, the government is no longer determining pump prices but the market forces.”
In addition to the foreign exchange crisis, the expenses related to transporting petroleum products from depots in Lagos to other parts of the country are also contributing to the petrol price. This situation has compelled oil marketers to sell fuel at higher rates, particularly affecting consumers in northern Nigeria.
As Nigerians grapple with elevated costs of food and transportation amid high inflation rates and a challenging cost of living, concerns about further petrol price increases add to the economic pressures faced by citizens.
