By Latiifah Amusan
The Central Bank of Nigeria (CBN) has revealed that the country spends a staggering $150 million every month on petrol importation.
Principal Manager at the CBN, Osagie Clement, made this revelation, shedding light on the economic challenges posed by the continuous reliance on fuel imports.
Clement further emphasized that the CBN has no authority over the pricing of premium motor spirit (PMS) or the dollar exchange rate, which adds to the complexities of managing the nation’s economy.
To address the current economic hurdles, Ogbugo Ukoha, Executive Director of Distribution Systems at the Nigeria Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), emphasized that market forces of demand and supply would determine petrol prices.
Ukoha highlighted that the recently enacted Petroleum Industry Act (PIA) empowers regulators to intervene in cases of cartel building and illegal profiteering, ensuring fair competition within the industry.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) denied attributing the high cost of PMS to security agencies.
The National President of IPMAN, Elder Chinedu Okoronkwo clarified that the reports were aimed at creating disaffection between the association and security agencies.
In proffering a solution to the petrol price increase, Okoronkwo suggested that the Federal Government quickly adopt Compressed Natural Gas (CNG) as an alternative to mitigate the impact of rising petrol costs.
