Oil marketers have signaled that the cost of Premium Motor Spirit (petrol) could increase to between N680/litre and N720/litre in the coming weeks if the dollar continues to trade between N910 and N950 at the parallel market. This prediction comes as a result of the dollar’s impact on the local currency and the scarcity of foreign exchange required for importing petrol.
Dealers aiming to import petrol are facing delays due to the scarcity of foreign exchange, particularly from the Central Bank of Nigeria’s (CBN) Importers and Exporters official window. This situation has led to the suspension of petrol importation, causing concerns about potential price hikes.
Major oil dealers, including the Major Oil Marketers Association of Nigeria, Independent Petroleum Marketers Association of Nigeria, and Petroleum Products Retail Outlets Owners Association of Nigeria, have called for the Federal Government’s intervention to address the escalating crisis. They emphasize the direct link between petrol price and foreign exchange fluctuations.
The Executive Secretary of the Major Oil Marketers Association of Nigeria, Clement Isong, noted that despite the issuance of import licenses to several marketers, the scarcity of forex from both the CBN’s official window and the parallel market has hindered petrol importation. Isong also emphasized the necessity of addressing security concerns in the Niger Delta to boost crude oil output and stabilize the forex market.
Opinion:
The potential rise in petrol prices due to currency fluctuations highlights the intricate relationship between global economic factors and everyday commodities. Such situations underscore the importance of maintaining economic stability and devising strategies to mitigate the impact of currency volatility on essential goods like petrol, which affects citizens’ daily lives.