The President of the Association of Distributors and Transporters of Petroleum Products (ADITOP), Lawan Dan-Zaki, has stated that the foreign exchange (Forex) rate will determine the cost of fuel at the petrol stations.
Dan-Zaki said if fuel is imported into Nigeria at N700 per dollar, the oil marketer shouldn’t be expected to sell the petrol to Nigerians at lower than the forex rate.
His comment comes amid a claim by some oil marketers that the cost of fuel could rise to N700 per litre, from N500 due to foreign exchange rate and transportation costs, as well as profit margin.
Although, the Independent Petroleum Marketers Association of Nigeria (IPMAN) later denied any plan to raise the fuel price, which was N189 per litre in May, before it was increased to N500 after the subsidy on fuel was stopped by President Bola Tinubu.
Speaking on the impact of the foreign exchange on fuel prices on Monday, Dan-Zaki told NAN: “The former official exchange rate by the Central Bank of Nigeria (CBN) is not realistic anymore.
“So if an importer is importing product, he has to buy at black-market rate and that will determine how much to be sold to marketers and other consumers.
“If he imports at N700 per dollar, there is no way a marketer will buy at N700 and still sell at same price.”
Although he disclosed that the speculated prices are just predictions, as no cargo comes into Nigeria at a high price for now.
He explained that the speculation is to compel the Federal Government to intervene and offer them foreign exchange at a lower rate.
“As of now, no cargo comes with the high price, marketers are just predicting. The importers are also very clever, they just want the government to intervene and consider them in giving lower price exchange rate.
“As time goes on when the competition begins, the pump price of fuel will come down because it is only the market competition that will bring the price down,” the President of ADITOP said.
He, however, urged the government to allow market forces or demand and supply to determine the prices of fuel, as prices will continue to fluctuate due to the recent deregulation until it later stabilises.
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