Dollar surge casts shadow on fuel prices, IPMAN warns of further hikes
The Independent Petroleum Marketers Association of Nigeria, has sounded an alarm, asserting that the cost of fuel, commonly known as Premium Motor Spirit is poised to remain on an upward trajectory as long as the US Dollar maintains its dominance in the foreign exchange market.
Chinedu Okoronkwo, the National President of IPMAN, illuminated the delicate connection between the Dollar’s ascension and the fluctuating fuel prices. He highlighted that the recent shift from government-regulated pricing to market-driven forces has opened the door to these price fluctuations, heavily influenced by the Dollar’s value in comparison to the Nigerian Naira.
He said, “With each increase in the Dollar’s exchange rate, the pump prices of fuel seem to follow suit, spelling financial challenges for consumers.”
Okoronkwo’s insights reveal that the Dollar’s strength holds a decisive sway over the cost of a vital commodity like fuel.
Proposing a potential solution, Okoronkwo urged the government to shift focus towards making Compressed Natural Gas (CNG) more widely accessible to Nigerians. This strategic move could serve as a cushion against the mounting pressure of fuel price hikes, offering citizens a more stable and affordable alternative.
As the Dollar continues its ascendancy, the Nigerian Naira’s exchange rate has faced further erosion, reaching a concerning N782.38/$1 in the official market.
At the unofficial parallel market, this rate is even steeper at 910/$1. If this trend persists, experts predict the pump price of fuel could cross the N617 per litre mark, impacting individuals and businesses alike.
The intricate interplay between global financial dynamics and local market realities underscores the ongoing challenges faced by consumers in the realm of fuel costs.
