Oil Marketers have said Nigerians will experience a further reduction in the pump price of Premium Motor Spirit, popularly known as petrol, in the coming weeks as a result of the recently introduced foreign exchange policy by the Central Bank of Nigeria.
The approved price for petrol is between N135 and N145 per litre. Currently, no filling station is dispensing the product at the lowest approved price of N135 as many sell between N140 and N145. But the marketers are optimistic that the PMS price will fall considerably from next month due to the latest forex policy.
On May 24, 2016, the Monetary Policy Committee of the CBN directed the management of the apex bank to adopt a flexible exchange rate policy in the inter-bank forex management structure.
The flexible exchange rate system, which commenced last Monday, is a monetary policy that allows the exchange rate to be determined by the market through the demand and supply.
The policy had ensured uniformity in the foreign exchange market, a development that industry experts and oil marketers said had cut down the huge capital outlay on forex, particularly when assessed from the black or parallel market.
The Corporate Affairs Manager, Nipco Plc, a popular oil marketing firm, Mr. Taofeeq Lawal, told our correspondent that some marketers were able to assess forex at N250 to a dollar when the policy was initially introduced by the central bank, as against the N360 rate at the parallel market.
He explained that at the new rate, which was less than the N288/dollar price as projected by the Petroleum Product Pricing Regulatory Agency, oil marketers had more chances to reduce the PMS price and still make a good profit.