Following an all-time high exchange rate of the naria against the dollar which hit 400 last week, indications exist that the price of fuel may be increased soon.
The speculation surrounding possible increment in fuel pump prices comes as a result of the continued scarcity of the dollar to finance importation of the product.
Marketers, worried by the continuous slip in the nation’s currency value have expressed their fears that if the country’s economic standing is not properly cared for, it might result in an upward review of petrol pump price which at the moment is fixed at N145 per liter.
Recall that following the move by the Federal Government to liberalise the downstream sector of the Petroleum industry on May 11, 2016, the pump price of petrol was upwardly reviewed from its initial rate which stood at N86 and N86.5 per liter to N145 per liter.
An official of a notable oil marketing company while speaking to Punch said: “The truth is that Nigerians just have to brace for higher PMS price; there are no two ways about it. The government cannot fund this market; the money is not just there. Even if the government wishes to assist, it does not have the wherewithal to do. So, Nigerians should brace for higher rates”.
He further added: “We are all aware that the price of crude has been falling in the international market and it is the dollar the government gets from crude sale that it uses to solve forex problems. So, there’s no fast rule or solution to it than for all of us, both users and marketers, to just prepare for a price hike.
“For marketers, they should know that the days of higher profits are gone. Before now, if you want to import petrol, you’ll have to wait for months and possibly bribe some people to get an import licence. But those days are gone; nowadays, every interested dealer can get the licence and this has created room for competition, which is why you still get the product at around N140 to N145 per litre. We only hope that this will continue as the dollar availability improves.”