Oil marketers have issued a dire warning, signaling an impending surge in the cost of Premium Motor Spirit (PMS), commonly referred to as petrol. The projected price hike, expected to range between N680 to N720 per litre, is contingent on the Nigerian currency's continued depreciation against the US dollar in the parallel market, which has been trading around N910 to N950. As a result of the volatile forex situation, dealers looking to import PMS are facing significant challenges due to the scarcity of foreign exchange.
The Nigerian National Petroleum Corporation (NNPC) remains the primary importer of petrol in the country, although a recent importer, Emadeb, is also grappling with the depreciating naira. It's worth noting that the recent fluctuations in the naira's value against the dollar have prompted these dire warnings from oil marketers.
Industry experts, including senior officials from major oil dealers, have emphasized the need for government intervention to address the crisis. Various industry associations, such as the Major Oil Marketers Association of Nigeria, the Independent Petroleum Marketers Association of Nigeria, and the Petroleum Products Retail Outlets Owners Association of Nigeria, have joined the call for government action.
The impact of the forex crisis on petrol pricing has been underlined by market dynamics, with prices closely tied to foreign exchange fluctuations. If the naira's downward trend continues, a surge in fuel prices is inevitable, and this has significant implications for the general public.
While there are expectations of a possible government intervention, there's also a call for broader solutions, such as revitalizing Nigeria's refineries to mitigate the effects of currency volatility on fuel prices. The recent diversion of Diaspora remittances to the parallel market has further complicated the forex situation, according to the Central Bank of Nigeria (CBN), contributing to the ongoing fall of the naira against the dollar.
The public is anxiously awaiting any intervention measures from the government to address this mounting fuel crisis and alleviate the potential financial burden on Nigerian citizens.