Fuel Hike: IPMAN explains key factors for new petrol price regime, suggests CNG alternative

*Chinedu Okoronkwo, National President of the Independent Petroleum Marketers Association of Nigeria explains the sudden hikes in the pump price of petroleum products result from high exchange rate of Dollars to Naira, advocating the use of Compressed Natural Gas as an alternative to petrol

Isola Moses | ConsumerConnect

Following the recent fuel subsidy removal and deregulation of the downstream sector of the economy, Chinedu Okoronkwo, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN) Tuesday, July 18, 2023, explained the sudden hike in the pump price of petroleum products in the country.

ConsumerConnect reports that Okoronkwo, while featuring on an Arise TV programme, blamed the current petrol price hikes in several parts of Nigeria on the exchange rate of the US Dollars to Naira, Nigeria’s currency.

The IPMAN National President also explained that petroleum products are imported into the West African country with Dollars, abd this development is responsible for the sudden increases in fuel prices in the economy.

Adopting Compressed Natural Gas option

As part of measures to address the perennial fuel price hikes, Okoronkwo, advocated the use of Compressed Natural Gas (CNG) as an alternative to petrol.

Okoronkwo further stated: “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.”

He said: “The product is not refined here (in Nigeria); 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 IPMAN as well noted that the price had really gone up because of the fundamentals in the market, which has to do with the Dollars.

It is recalled the Nigerian National Petroleum Company Limited (NNPCL) Tuesday, July 18, 2023, had increased the pump price of petrol to about N617 per litre.

Prior to the sudden price hike Tuesday, the state oil firm has jacked up petrol price from about N210 to over N500 per litre, following the removal of fuel subsidy by the Federal Government.

Kindly Share This Story