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PETROAN Leadership Links Fuel Price Increase to Foreign Exchange Rate

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The chairman of the Rivers State chapter of the Petroleum Product Retail Outfits Owners Association of Nigeria (PETROAN) thinks the foreign exchange rate may be responsible for the increase in petrol prices. 

The pump price increased from N511 to N591 in Port Harcourt on Monday, and higher than that in some other parts of Nigeria.

Francis Dimkpa told Nigeria Info that petroleum products marketers now seek for dollars to purchase their products at the depots, unlike the period before the second half of 2023 when the state-oil company, NNPC, was solely responsible for petrol importation.

But he admits that may not be the only reason for the price hike.

“We are not aware of the direct cause of this increase in pump price. The cause would not be too far from the rise in foreign exchange,’’ he said.

The PETROAN chairman insinuates that the price increase may not last long but reasons that prices could reduce and stabilize when the federal government fixes the nation’s four refineries.

“Nigerians should hope that the refineries in the country get to work.  If our refineries are working, if these refineries do not work then we would be affected by the situation of the international market,” he said.

“This might also lead to more rise in the price of oil products. The fact is that the price cannot be stable. We are encouraging local production therefore; the current administration should do the needful by getting our local refineries to function.’’

Meanwhile, some residents of Port Harcourt buying petrol at a fuel station said they are surprised by the sudden increase in price. They want the government to quickly fix the refineries.

“This is a shock to us all. The government makes policies without informing the citizens,” said a barber.

“We did not expect this kind of situation, we are hoping the president looks into it because the hardship would be too much. Running our businesses would now be difficult,’’ he added.


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