Uncertainty Looms Over Fuel Price As Crude Oil Surges to $93.50

VAM News Update

Concerns are growing over the potential hike in petrol prices in Nigeria as crude oil prices continue to rise in the international market.

On Monday, the price of crude oil reached $93.55 per barrel.

This increase coincides with the depreciation of the Naira against foreign currencies, with an exchange rate of N980/$1 in the parallel market.

However, both the Independent Marketers Association of Nigeria (IPMAN) and the Major Oil Marketers Association of Nigeria have alleviated fears of an impending petrol price increase due to the rising cost of crude oil and the weakening Naira.

Over the past three months, fuel prices have been raised twice.

In June, after the removal of the fuel subsidy, the pump price rose by 210% to N546.83 per litre from N175 per litre. Less than a month later, the price increased again to N617 per litre.

Despite the continued depreciation of the Naira in the forex market between July and September, there have been no further fuel price hikes.

This is in accordance with the assurance given by President Bola Ahmed Tinubu that there will not be any more increases in the price of petroleum motor spirit, according to Ajuri Ngelale, the Special Adviser to the President on Media and Publicity.

Mele Kyari, the Group Chief Executive of the Nigerian National Petroleum Corporation Limited, reiterated Tinubu’s statement.

Except for July, when Emadeb Energy imported 27 million litres of fuel, NNPC Limited has been the sole supplier of the product nationwide.

There are also claims that the Federal Government is indirectly subsidizing the commodity in order to prevent further increases in the pump price.

The President of IPMAN, Chinedu Okonkwo, stated that there is no need to worry about the increase in fuel prices. He explained that fuel markets purchase products in Naira.

Okonkwo urged the government to expedite efforts to implement Compressed Natural Gas as a viable alternative to fuel.

Tunji Oyebanji, a former Chairman of MOMAN, explained that Nigeria has a special fuel-deregulated market where NNPC sets the price as the sole supplier.

As long as NNPC remains the sole supplier and fuel importer, the price is likely to remain unchanged in the interest of Nigerians, according to Oyebanji.

In summary, the uncertainty surrounding fuel prices in Nigeria persists as crude oil continues to surge, but both IPMAN and MOMAN provide reassurances that there will not be an immediate petrol price hike.