The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said there will be a progressive increase in the pump price of fuel in the country.

Speaking on the fuel price situation on Thursday, the National President of IPMAN, Chinedu Okoronkwo, said since the removal of subsidy on Premium Motor Spirit, also known as petrol by President Bola Tinubu-led Nigerian government, fuel pump price is no longer determined by the government but by the market forces and dollar to naira exchange rate.

Regarding speculations that the pump price of petrol could rise to N1,000 by December, the IPMAN boss said he cannot authenticate the exact amount the fuel price will get to.

He, however, noted that as long as the dollar keeps rising in the foreign exchange market, the price of fuel in the country will continue to skyrocket.

“Nigerians are aware that there is no more subsidy and we have gotten into a new season where the market fundamentals are the ones playing the major role.

“So, we need to see how we can get an alternative as a panacea to the fuel price increase. Members of IPMAN use Compressed Natural Gas (CNG) and we believe it is the best alternative. The pressure on the naira is so much and the international market dictate is also not helping matters.

“If we can aggressively direct our attention towards Compressed Natural Gas, it will be a solution to fuel price hikes. It will also quench the pressure of the dollar on the naira.”

According to him, the exchange rate is around N890/$1 now and as the dollar rises, fuel pump prices will continue to go up because marketers buy the product in dollars.

On Wednesday, the naira dropped further to the dollar as it exchanged at N782.38/$1 at the official market and 910/$1 at the parallel market.

The Nigerian National Petroleum Company Limited (NNPCL) which is the country’s major oil marketer in July announced that the pump price of petrol had increased to at least N617 per litre.

On whether fuel pump price will rise to as high as N1,000, Okoronkwo said, “I don’t have control over it. Market fundamentals are the ones to determine but the only thing we can do to take the alternative which is Compressed Natural Gas.”

Allaying the fear of people on the use of Compressed Natural Gas even for generators, the IPMAN President said compressed gas is about the best option as it is cleaner, cheaper and environmentally friendlier because it gives more mileage than fuel.

“It is lighter than air so that if there is any escape, it will combust like Liquified Natural Gas (LNG), Butane and Prothane. When CNG leaks, it will evaporate into the air.”



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