IPMAN Gives Reasons for New Hike in Fuel Price

The National President of the Independent Petroleum Marketers Association of Nigeria, Chinedu Okoronkwo, on Tuesday explained the sudden hike in the pump price of petroleum products in Nigeria.

Okoronkwo blamed the sudden hike in the pump price of petrol on the exchange rates.

He explained that petroleum products were imported to Nigeria, using dollars, hence the increase.

Speaking on Arise Television, the IPMAN national president advocated the use of Compressed Natural Gas (CNG) as an alternative to petrol.

Okoronkwo said: “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.”

The NNPC, on Tuesday, increased the pump price of petrol to about N617 per litre.

This is coming shortly after the petrol price was increased to over N500 per litre, following the removal of fuel subsidy.