Oil marketers have indicated that the cost of Premium Motor Spirit (PMS), commonly known as petrol, is likely to increase to between N680/litre and N720/litre in the coming weeks if the exchange rate of the dollar against the Naira continues to rise on the parallel market
They cited the scarcity of foreign exchange as a significant factor affecting dealers’ ability to import petrol.
The situation worsened after the naira surpassed the N900/dollar mark, reaching over 945/dollar at the parallel market.
The Central Bank of Nigeria (CBN) Importers and Exporters official window, which has a lower exchange rate of about $740/litre, has faced liquidity issues, making it unable to provide the required $25 million to $30 million needed for petrol importation by dealers.
This has resulted in the suspension of petrol imports by dealers who were initially interested in importing the commodity. Only one marketer, Emadeb, has recently imported petrol, and they are now finding it challenging to recoup their investment due to the depreciation of the naira.
Major oil dealers warned that a price hike for PMS is likely unless the local currency appreciates in the coming weeks. Leaders of various oil marketers’ associations called on the Federal Government to intervene and address the crisis.
They emphasized that the price of petrol is now heavily influenced by fluctuations in the forex market, making an increase inevitable as the naira weakens against the dollar.
