FUEL PRICE CRASH HINGES ON FOREX, INTERNATIONAL CRUDE PRICES – MEMAN
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GREATRIBUNETVNEWS–The Major Energies Marketers Association of Nigeria (MEMAN) has stated that a possible crash in fuel prices in Nigeria depends on the foreign exchange (Forex) rate and international crude oil prices.
At a quarterly webinar and engagement with Energy Editors, MEMAN attributed the potential price reduction to the coming on stream of the Port Harcourt and Dangote refineries. However, the association emphasized that a drastic crash in fuel prices is unlikely until there is a reduction in crude oil prices at the international market and the naira gains at the foreign exchange market.
Vice President, Crude Oil at Argus Media, James Gooder, highlighted that Forex remains a key factor in fuel price reduction in Nigeria. He noted that the production from both refineries and other smaller ones across the country would slightly force prices down, but a drastic reduction is unlikely.
Gooder stated, “For prices to drop to about N700 or N800 and below, we need to see a substantial change in the foreign exchange as well as reduction in prices of crude at the international market.”
The Chief Executive Officer of MEMAN, Clement Isong, provided details about the pricing trend and exchange rate movement on imported products. According to him, the spot price of Premium Motor Spirit (PMS) is currently N976.07, while the average price per liter of PMS is N971.14.
