The Independent Petroleum Marketers Association of Nigeria (IPMAN) has raised concerns over a potential surge in the price of Premium Motor Spirit (PMS) to around N750 per litre.

Chinedu Ukadike, the national spokesperson for IPMAN, expressed this apprehension during an interview with Tribune in Abuja.

Ukadike noted that the Nigerian National Petroleum Company Limited (NNPCL) is currently maintaining an ex-depot price of N587.7. However, if the NNPCL decides to adjust its pricing, other marketers are likely to follow suit.

IPMAN urged the government to adopt strategies to prevent further depreciation of the naira.

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Ukadike explained, “Considering the dollar was N750, but now it has exceeded N900, which is almost a 20% increase, if you apply this, the potential price could be around N750 per litre.

The escalating dollar rate in the parallel market, which currently stands at N910, will also result in increased landing costs for PMS, leading to higher domestic prices.”

He emphasized the absence of government subsidies and local production in Nigeria, further contributing to the naira’s vulnerability.

Ukadike warned that if substantial measures are not taken, the naira could approach N1,100 per dollar by the end of the year, posing a significant inflationary risk to the country.

Following the removal of fuel subsidy by the Federal Government, the pump price of petrol has already increased twice, as market forces now dictate pricing.