Oil marketers have raised concerns that the cost of Premium Motor Spirit (PMS), commonly known as petrol, might surge to a range of N680 to N720 per liter in the upcoming weeks. This projection is contingent on the continuous trading of the dollar in the range of N910 to N950 at the parallel market. These remarks came from oil marketers as they disclosed the impact of foreign exchange scarcity on the importation of PMS.

Dealers involved in importing PMS have revealed that they are compelled to suspend their import plans due to the shortage of foreign exchange resources needed for the endeavor. This caution follows closely after the national currency exceeded the N900 to the dollar threshold, with the naira's value surpassing 945 to the dollar in the parallel market.

Industry insiders indicated that the official window for foreign exchange offered by the Central Bank of Nigeria (CBN) specifically for importers and exporters, featuring a lower exchange rate of about $740 per liter, has remained illiquid. This has made it impossible to provide the $25 million to $30 million required for PMS importation by dealers. Consequently, several dealers have halted their plans for importing petrol, a commodity they were previously eager to bring in.

Operators in the oil sector have shared their concerns, revealing that Emadeb, the sole marketer who recently imported the commodity, is now grappling with challenges in recouping their investment due to the depreciation of the naira.

Prominent figures within major oil dealer associations, including the Major Oil Marketers Association of Nigeria, Independent Petroleum Marketers Association of Nigeria, and Petroleum Products Retail Outlets Owners Association of Nigeria, have highlighted the need for the Federal Government to intervene and address this brewing crisis.

Chinedu Ukadike, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, emphasized that petrol's price is currently driven by fluctuations in foreign exchange rates. He asserted that a price increase should be anticipated, particularly if there is a depreciation of the naira against the dollar.

Ukadike explained that the surge in demand for dollars, driven by multiple factors including other import activities, will contribute to an increase in petroleum product prices. With the naira-dollar exchange rate potentially reaching N1,000, Ukadike projected that petrol could be sold at N750 per liter, up from the current range of N680 to N720 per liter.

The oil marketer also noted that despite the challenges in the official forex window provided by the CBN, marketers are still sourcing dollars from the parallel market. He emphasized that the absence of subsidies on petroleum products means that costs will fluctuate in accordance with the volatility of the dollar.

Ukadike further revealed that the Nigerian National Petroleum Company Limited remains the principal importer of petrol in the country. While another company, Emadeb, recently entered the scene, the challenges tied to the naira's depreciation and dollar-dominated imports are hindering sustainable operations.

Ukadike indicated that changes in the price of petrol at NNPC outlets will likely serve as a benchmark for other marketers to adjust their pricing accordingly.