The Independent Petroleum Marketers Association of Nigeria (IPMAN) has indicated that the price of Premium Motor Spirit (PMS) could potentially reach around N750 per litre. Chinedu Ukadike, the association’s national spokesperson, mentioned this in Abuja.
Thank you for reading this post, don't forget to subscribe!Ukadike explained that the Nigerian National Petroleum Company Limited (NNPCL) is presently maintaining an ex-depot price of N587.7. However, if the NNPCL alters its pricing, other marketers are likely to follow suit.
IPMAN also urged the government to take steps to prevent the further depreciation of the naira. Ukadike emphasized that due to the significant increase in the dollar’s value (from N750 to over N900), a 10% price increase is anticipated, bringing the potential pump price to N750 per litre. The current parallel market dollar rate at N910 would lead to higher landing costs for PMS and subsequently higher domestic prices.
With no government subsidy and limited local production, the situation could worsen, potentially pushing the naira to around N1,100 per dollar by the end of the year, contributing to significant inflation.
Notably, since the removal of fuel subsidy, the pump price of PMS has increased twice, allowing market forces to dictate pricing.
