By Onome Amuge.
The Independent Marketers Association of Nigeria (IPMAN) has identified market forces including the increase in crude oil prices in the international market, increase in dollar to naira exchange,among others for the new hike in fuel pump prices in Nigeria.
This is as the Nigerian National Petroleum Company Limited (NNPCL),on Tuesday, announced the increment in the pump price of petrol from about N517 to N617 per litre at outlets in Abuja, while outlets in Lagos currently sell between N560 to about N617 from the previous price of N488-N500 per litre.
Commenting on the fresh hike amid the recent fuel subsidy removal by the President Bola Tinubu administration, Mike Osatuyi, the national operations controller of IPMAN, attributed the increase to market forces.
Osatuyi explained that Brent crude benchmark price had surpassed $80 per barrel for the first time since May 2023, an indication that supply is gradually tightening and demand is expanding.
He noted further that another factor that led to the increase in fuel price was the hike in the exchange rate between the naira and the US dollar which closed at N795.28/$1 at the official Investor and Exporters window.
The IPMAN national operations controller also pointed out that petroleum is imported with foreign currency. He also noted that the imports by many companies have not arrived in the country as they need more naira to put into dollars in order to import.
“With the dwindling power of the naira, currently going for more than N800 to a dollar, they need more naira to put into dollars in order to import. Naira is becoming cheaper than before,” he said.
However, as Nigerians groan over the new hike in fuel prices, industry analysts said It is expected that the price will fall based on the competition to be expected as soon as
increased supply eventually hit the domestic market. They also noted that the price level will depend on market forces.
