Abuja - August 14 (Mediaage NG News) – Nigerian oil marketers have warned of an imminent rise in cost of fuel, the third time it would increase since President Bola Tinubu assumed office last May.
This comes amid a foreign exchange crisis. Prices are projected to rise to about N720 per litre ($0.93; £0.73) from the current price of N630 ($0.77).
The Nigerian Naira has continued to freefall at the foreign exchange market since the government unified the exchange rates.
Yesterday, the Nigerian currency traded at an all time high of 910-945 naira against the dollar at the parallel market.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) says they fear fuel prices will continue to increase as long as the dollar rises in the foreign exchange market.
The oil marketers also said that many dealers who want to import the product have had to suspend the plan due to the scarcity of foreign exchange.
“With fuel subsidy removal, the government is no longer determining pump prices but the market forces”, the BBC quotes the president of the association, Mr. Chinedu Okoronkwo.
Apart from the foreign exchange crisis, the cost of transporting petroleum products from depots in Lagos to other parts of the country is also a contributing factor to the price of petrol.
This has forced oil marketers to sell fuel at higher prices to consumers especially those in northern Nigeria.
Nigerians are already facing hike in costs of food items and transportation amid high inflation rates and cost of living crisis.