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Fuel marketers in Nigeria are facing challenges due to the depreciation of the naira against the US dollar and falling oil prices.
Despite a slight decrease in crude oil prices, the weakening value of the local currency on the black market has raised concerns about potential increases in gasoline prices at fuel stations.
Previously, when the exchange rate was between N750 to N800/$, petrol cost was set between N590/litre and N617/litre.
However, with the current exchange rate of N920/$, oil traders estimate the cost to be in the range of N680/litre to N700/litre for PMS.
Additionally, oil prices are expected to decline for the second consecutive week, and currency traders are cautious ahead of Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium.
The strengthening dollar has also increased the cost for Nigeria’s petrol marketers to import oil.
Despite these challenges, President Bola Tinubu has instructed that there be no increase in fuel prices, as confirmed by Ajuri Ngelale, the president’s special adviser on communications and advertising.
NNPC Limited has also addressed concerns about potential gas price increases at pump stations.
This article was updated 4 weeks ago