The Chairman of the Major Oil Marketers Association of Nigeria (MOMAN), Mr. Olumide Adeosun, revealed that fluctuations in the foreign exchange rate have led to an increase of N100 per liter for imported Premium Motor Spirit (PMS) or petrol.
Adeosun stated during a webinar interactive session with the media that the recent upward swing in the Investors and Exporters (I&E) window had pushed the exchange rate close to N825 to the US Dollar, which added N100 to the cost of importing a liter of PMS into the country.
While the price of PMS had remained relatively stable in recent months based on international crude oil prices, there has been a significant increase in the foreign exchange rate, which has impacted the pump prices of petrol across the country.
MOMAN reiterated its support for the policy of deregulation in the petroleum industry, emphasizing that deregulation promises a transparent and level playing field where pump prices reflect current economic realities.
The association called on governments and employers to implement palliative measures to support vulnerable individuals facing hardships due to the petrol price increase and urged operators and regulators to engage the public transparently and foster fair competition in the market.
Opinion:
The fluctuations in the foreign exchange rate and their impact on petrol prices highlight the challenges faced by Nigeria’s petroleum industry. While the deregulation policy aims to promote transparency and fair competition, it is essential for the government to implement palliative measures to support citizens during this period of increased fuel costs. Ensuring a level playing field and access to foreign exchange for imports is crucial to enable all operators to compete fairly. A gradual and transparent approach to market liberalization is necessary to gain public trust and ensure that the benefits of deregulation are passed on to consumers. Overall, MOMAN’s call for collaborative efforts between stakeholders and regulators is vital to navigate the complexities of the petroleum market and mitigate the effects of price fluctuations on the Nigerian public.