IPMAN Says Fuel Price Will Increase As Naira Value Depreciates

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said there will be a progressive increase in the pump price of fuel in the country.

According to SaharaReporters, the National President of IPMAN, Chinedu Okoronkwo, said since the removal of subsidy on Premium Motor Spirit, also known as petrol by President Bola Tinubu-led Nigerian government, fuel pump price is no longer determined by the government but by the market forces and dollar to naira exchange rate.

He, however, noted that as long as the dollar keeps rising in the foreign exchange market, the price of fuel in the country will continue to skyrocket.

“Nigerians are aware that there is no more subsidy and we have gotten into a new season where the market fundamentals are the ones playing the major role.

“So, we need to see how we can get an alternative as a panacea to the fuel price increase.

“ Members of IPMAN use Compressed Natural Gas (CNG) and we believe it is the best alternative. The pressure on the naira is so much and the international market dictate is also not helping matters.

“If we can aggressively direct our attention towards Compressed Natural Gas, it will be a solution to fuel price hikes. It will also quench the pressure of the dollar on the naira.”

He stated that exchange rate is around N890/$1 now and as the dollar rises, fuel pump prices will continue to go up because marketers buy the product in dollars.