Petrol pump price may rise to N750 per litre

The pump price of the Premium Motor Spirit (PMS) may yet increase to about N750 per litre, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has hinted.

This is even as the association urged the government to initiate policies that would save the naira from further depreciation.

The association’s national spokesperson, Mr. Chinedu Ukadike gave the hint while speaking to journalists on Thursday in Abuja.

Although, he said the Nigerian National Petroleum Company Limited (NNPCL), being the major importer of petroleum products, has yet to change its ex-depot price from N587.7, noting that once this is done other marketers will do the same.

“There will be a 10 percent increase because the dollar was N750, now is over N900 that is almost a 20% increase if you apply this, you should be talking about N750/ litre,”says Ukadike.

He stressed that the increase was due to the dollar rate against the Naira adding that this would also affect product landing cost.

“Currently, dollar rate at the parallel market as of today is N910 which also means that the landing cost of PMS will increase and also the domestic price of PMS will also increase.

“People should understand that government is no longer subsidizing and there is no local production in Nigeria. Had it been there is local production, it can be able to cushion the effect of too many naira pursuing the dollar. It would have helped us and saved the naira.

“If the government does not do something drastically, before the end of this year, Naira may be close to N1,100 per dollar and this will be a serious inflation for Nigeria,” he added.

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Since the Federal Government halted payment of subsidy on PMS, the pump price of the product has increased twice, hence market forces are now allowed to determine prices.