The Independent Petroleum Marketers Association of Nigeria has suggested that the price of petrol should be adjusted to approximately £1.58 per litre (between N890 to N900 per litre) due to the depreciation of the Nigerian naira against the US dollar and the rising crude oil prices on the international market.
According to oil marketers, the ongoing forex crisis and recent increases in crude oil prices have made it unsustainable to maintain the current petrol price at N617 per litre, indicating that the government may have quietly reintroduced fuel subsidies.
The National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, Chief Chinedu Ukadike, emphasized that given the continued devaluation of the naira, it is unlikely that the government can sustain the petrol price at N617 per litre without providing subsidies.
He pointed out that the exchange rate for the US dollar in the parallel market has reached almost N990, significantly impacting the pump price of diesel, which is now close to N1,000 per litre. As a result, he argued that the retail price of Premium Motor Spirit (PMS) should be adjusted to approximately N890 to N900 per litre. Ukadike also noted that when comparing these figures to petrol prices in other countries, such as the United States, where super petrol is sold at approximately $3.90 (equivalent to about N3,000 per litre), or even other African nations where it ranges between N1,200 and N1,500 per litre, the suggested price falls in line with the prevailing forex rates in Nigeria. He concluded that government assistance through subsidies would be beneficial for the public.