In a recent development, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Okoronkwo, has shed light on the sudden increase in the pump price of petroleum products in Nigeria. Okoronkwo attributes this hike to the cost of dollars, as petroleum products are imported using this currency.
During an interview on Arise Television, Okoronkwo emphasized the need to explore alternative options such as Compressed Natural Gas (CNG) as a substitute for petrol. He highlighted that the exchange rate of the dollar has significantly impacted the petroleum business. Previously, multiple exchange rate windows were available, with the Central Bank of Nigeria (CBN) offering around N400, while the black market rate hovered around N700. However, presently, there is only one window, and the dollar stands at approximately N800.
The IPMAN National President further elaborated that in a deregulated market, the cost determines the price of commodities. Since Nigeria relies on imports for petroleum products and does not refine them domestically, the increase in dollar value directly affects the pump price of petrol.
In light of these circumstances, Okoronkwo suggested serious consideration of CNG as a viable option. This alternative would allow consumers to choose between gas and petrol, providing flexibility and potentially reducing reliance on imported petroleum products.
It is noteworthy that the Nigerian National Petroleum Corporation (NNPC) recently raised the pump price of petrol to about N617 per litre. This adjustment follows the removal of fuel subsidy, which had previously led to an increase in petrol price, exceeding N500 per litre.
This revelation by the IPMAN National President sheds light on the underlying factors behind the surge in petrol prices and encourages the exploration of alternative energy sources like CNG. With the current state of the market and the impact of the dollar’s value, it is crucial for Nigeria to explore viable solutions to address the escalating costs of petroleum products.
Source: Daily Post
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