Chinedu Okoronkwo, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), has attributed the sudden increase in the pump price of petroleum products in Nigeria to the cost of dollars. Okoronkwo explained that since petroleum products are imported into the country using dollars, the increase in the exchange rate directly affects the pump price.
In an interview on Arise Television, Okoronkwo advocated for the use of Compressed Natural Gas (CNG) as an alternative to petrol. He highlighted that the business of importing petroleum products is conducted in dollars, and with the current exchange rate, the cost has significantly increased. Okoronkwo emphasized that since Nigeria does not refine the products locally and relies on imports, the exchange rate plays a crucial role in determining the price.
Okoronkwo also mentioned that the Nigerian National Petroleum Corporation (NNPC) recently increased the pump price of petrol to about N617 per litre. This increase comes after the removal of fuel subsidy, which had previously led to the petrol price exceeding N500 per litre.
In light of these developments, Okoronkwo suggested that the country seriously consider using Compressed Natural Gas as an alternative to petrol, giving consumers the choice between gas and petrol. By exploring alternative energy sources like CNG, Nigeria could mitigate the impact of fluctuating exchange rates on petroleum product prices.
It is important to note that the information provided is based on Chinedu Okoronkwo’s statements during the interview, and the situation may continue to evolve in the coming days.
According to Okoronkwo: “This business is done with dollars, remember the rate of dollars now is in one window and not like we had several others, where CBN will give around N400 while the black market will be around the region of N700 but now there is no more second window.
“Today the dollar is around N800 and in a deregulated regime, what determines the price of anything is the cost. The product is not refined here, everything is imported.
“If we want to achieve something, there are other alternatives we have proffered. The CNG is something this nation needs to seriously look into; so it would be a matter of choice if you want to use gas or petrol.
“The price has really gone up because of the fundamentals in the market which has to do with the dollars.”
