Latest News on Petrol Price Hike: Real Reason Behind the Increase Revealed

In a recent interview on Arise Television, Chinedu Okoronkwo, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), shed light on the sudden surge in the pump price of petroleum products in Nigeria. Okoronkwo attributed the hike in petrol prices to the rising cost of the dollar, which is the currency used to import petroleum products into the country.

Okoronkwo emphasized that the current increase in the pump price of petrol is directly influenced by the cost of dollars. He explained that Nigeria relies heavily on imports for its petroleum products, as the country lacks domestic refineries. Consequently, the fluctuations in the value of the dollar have a significant impact on the overall cost of imported products, including petrol.

Previously, Nigeria operated multiple exchange rate windows, with the Central Bank of Nigeria (CBN) offering rates around N400, while the black market rates hovered around N700. However, with the current deregulated regime, there is only one official window, and the dollar is valued at approximately N800.

To address the situation and mitigate the effects of price fluctuations, Okoronkwo advocated for the adoption of Compressed Natural Gas (CNG) as an alternative to petrol. He suggested that exploring alternative energy sources like CNG would provide consumers with a choice between gas and petrol, potentially offering a more stable and cost-effective solution.

The recent hike in petrol prices follows the removal of fuel subsidies by the Nigerian National Petroleum Corporation (NNPC). As a result, the pump price of petrol has soared to around N617 per litre, following a previous increase to over N500 per litre.

Stakeholders in the petroleum industry, including IPMAN, have proposed various alternatives like CNG to diversify the energy market and reduce dependence on imported petroleum products. By considering sustainable options and embracing alternative energy sources, Nigeria can work towards achieving a more stable and affordable energy sector.

Source: Daily Trust

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