The Independent Petroleum Marketers Association of Nigeria recommends a petrol pump price range of N890 to N900 per litre.
The recommendation is based on the decline in the value of the naira compared to the US dollar and the rise in crude oil prices on the global market.
According to oil marketers, the forex crisis and the recent rise in crude prices have made it impossible for petrol prices to remain at N617/litre. They insisted the government had quietly reintroduced fuel subsidies.
The National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria, Chief Chinedu Ukadike, said,
“I told you earlier that there is no way that the government will sustain the price of petrol at N617/litre without paying subsidy on it, going by the continued fall of the naira. The dollar is almost N990 at the parallel market currently, and you can see the effect of this on the pump price of diesel. Diesel is close to N1,000/litre, so the retail price of PMS should be around N890 to N900/litre. Therefore, it is better for the government to assist the masses by paying subsidies. From our records, in the United States, the super product or petrol is sold for around $3.9, which is close to about N3,000/litre. The premium product is sold at about $2.89, which is over N2,000/litre. And if you check in other African countries you will find out that the product is being sold at between N1,200 and N1,500. But going by the forex rate in Nigeria, it should be around N900/litre.”