Oil marketers have signaled that the cost of petrol could soar to N680-N720 per litre soon if the dollar maintains its current trading rate of N910-N950 on the parallel market. Scarce foreign exchange resources are causing delays in importing petrol, with the Central Bank’s official exchange window unable to provide the necessary funds.
The warning comes after the naira surpassed the N900/dollar mark, hitting over 945/dollar on the parallel market. This has led to a halt in petrol imports by dealers, impacting prices. Only one marketer, Emadeb, recently imported the commodity and is struggling due to the naira’s depreciation.
Industry insiders highlight that unless the local currency strengthens in the coming weeks, a petrol price hike is inevitable. Major oil marketer associations emphasize the need for government intervention to address the crisis.
Chief Chinedu Ukadike, a representative from the Independent Petroleum Marketers Association, explains that petrol prices are linked to forex fluctuations, and as the dollar rises, petrol prices are likely to follow suit.
Nigerians can anticipate a price range of N680 to N720 if the exchange rate remains between N910 to N950 per dollar. However, if the dollar reaches N1,000, prices could hit N750 per litre.
Despite government-issued licenses, most dealers are not importing petrol due to the illiquidity of the official forex window. As the Nigerian National Petroleum Company remains the major importer, changes in petrol prices at their outlets are likely to signal price shifts for other marketers.
While the market faces uncertainty, President Bola Tinubu’s administration is expected to intervene to stabilize the situation and curb the impending crisis. Additionally, there are calls to refurbish Nigeria’s refineries to reduce dependency on imports and mitigate petrol price volatility.