Fuel Price Increment: Oil Marketers Blames Naira Depreciation

Marketers have blamed the depreciation of the naira and the present spike in crude oil prices for the recent rise in the price of Premium Motor Spirit, often known as petrol.
In a media workshop on Wednesday, Olumide Adeosun, the chairman of the Major Oil Marketers Association of Nigeria, stated that the worldwide price of crude oil and the currency rate made up the major components of the cost build-up for fuel, accounting for more than 80%.
He said that the remaining 20% was made up of margins, statutory dues, and distribution expenses.
MOMAN’s response follows NNPCL’s Tuesday increase in the price of fuel at the pump to N614 per litre.
He asserts that deregulation guarantees an open, fair playing field with prices at petrol stations that are transparent and cost-reflective.
“As of today, the liquid exchange rate is close to N825 to the dollar. This devaluation adds N100 to the cost of importing a single litre of PMS into the country.
“Consequently, an increase in the pump prices of petrol should be expected,” he further explained.
However, he went on to say that MOMAN supported the introduction of palliative measures by the three levels of government, as well as the private sector, to assist less fortunate members of society who had been impacted by the present suffering.
“We commend the authorities for their urgent efforts in opening the market, allowing various players to import petroleum products into the country,” Adeosun continued.
He contends that the commitment to a fair playing field and market liberalisation should increase the efficiency of operators, enabling them to provide the general public with competitive pricing options.
“Some operators have successfully imported PMS into the country, marking the first practical step towards a liberalised market.
“However, the major challenges still lie in accessing foreign exchange for imports and ensuring a level playing field regarding pump prices.
“If marketers are undertaking the financial risk of importing petrol, measures must be in place, in line with the Petroleum Industry Act, to ensure that no one player has an unfair advantage,” he added.

Source: Allnews Nigeria

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