Fuel Price Hike FG blames forex issues for increase in petrol price

In the issued statement, the government claimed the move became necessary due to extreme difficulties faced by importers in sourcing foreign exchange.

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Ibe kachikwu play

Ibe-kachikwu- Minister of state for petroleum

(Umeh News)
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The Federal government, yesterday, hiked the price of Premium Motor Spirit (PMS), also known as petrol, directing marketers to sell to sell the product at no higher than N145 per litre.

In the issued statement, the government claimed the move became necessary due to extreme difficulties faced by importers in sourcing foreign exchange.

Central Bank Governor Godwin Emefiele speaks during the monthly Monetary Policy Committee meeting in Abuja, Nigeria January 26, 2016. play Central Bank Governor Godwin Emefiele speaks during the monthly Monetary Policy Committee meeting in Abuja, Nigeria January 26, 2016. (REUTERS/Afolabi Sotunde)

 

Although the Independent Marketers Association of Nigeria (IPMAN), applauded the new pump price of petrol, the factions of the Nigeria Labour Congress (NLC), rejected the increase and vowed to resist it alongside its civil society allies, calling on government to revert the hike to avoid a nationwide mass protest.

READ: Chamber of commerce wants FG to allocate forex to genuine foreign business firms

However, the Petroleum Products Pricing Regulatory Agency (PPPRA), which is the agency responsible for determining product prices in the oil sector, said the decision to allow marketers fix the price within the new price band of N145, became necessary in the face of difficulties faced by importers in sourcing foreign exchange.

President Muhammadu Buhari speaks at the Commonwealth Tackling Corruption Together Conference in the United Kingdom on May 11, 2016. play

President Muhammadu Buhari speaks at the Commonwealth Tackling Corruption Together Conference in the United Kingdom on May 11, 2016.

(Twitter)

 

The PPPRA said to meet the consumption demand of the country, importers will be permitted to source for their foreign exchange requirements from secondary sources in order to make import purchases.

In the statement signed by Mrs. Sotonye Iyoyo, acting executive secretary, the agency said with immediate effect, the new price band for PMS shall be at a maximum of N145 per litre, noting, however, that NNPC retail stations on the outskirts of major cities were advised to sell at a price lower than N145 per litre.

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