PENGASSAN contradicts IPMAN, projects fuel pump price rise on volatile international crude costs

PENGASSAN contradicts IPMAN, seeks better exchange rate management

By Jeph Ajobaju, Chief Copy Editor

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“The price of PMS is directly linked to our weak naira. If the exchange rate improves to below N1,000 to a dollar, PMS could sell for N500–N600 per litre.

“The oil and gas business is conducted in USD (United States dollar), from equipment to expatriate salaries. Weak currency translates to higher costs, including PMS.

“Producing locally does not mean selling below cost. Even farmers calculate their production costs before adding margins” – Osifo

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Fuel pump price may increase “in the coming weeks” if crude oil price on the international market continues to rise, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned drivers and other consumers.

PENGASSAN President Festus Osifo projected the increase at the association’s National Executive Council (NEC) meeting in Lagos, where he pressed for better foreign exchange (forex) rate management, warning of potential fuel price hikes as crude prices rebound.

“The crude price rose to $80 per barrel today. Without exchange rate improvements, PMS prices will increase in the coming weeks,” Osifo said.

That contradicts the position of the Independent Petroleum Marketers Association of Nigeria (IPMAN), which has denied reports of a looming increase in fuel price, assuring that local refineries are now operational to contribute to price reduction.

IPMAN North West chapter Chairman Bashir Tahir told the Voice of America that claims of a plan to raise fuel price are not true, stressing that none of IPMAN’s members has increased the price of the commodity anywhere in the country.

“The market now determines prices, and there is no truth to the rumors of an increase in petrol prices. While diesel prices have risen recently due to market dynamics, they will naturally fall when market conditions improve,” he said.

Osifo countered that the exchange rate collapse propels high fuel prices despite the commencement of the operations of domestic refineries though not at full capacities.

He dismissed misconceptions about refining processes, explaining that achieving quality Premium Motor Spirit (PMS) or refined petroleum (fuel) requires multiple refining stages.

“The old Port Harcourt refinery is functional, and there is significant progress at the Kaduna and Port Harcourt refineries. Refineries globally engage in blending operations; it is a normal part of the process,” he said.

“The price of PMS is directly linked to our weak naira. If the exchange rate improves to below N1,000 to a dollar, PMS could sell for N500–N600 per litre.

“The oil and gas business is conducted in USD (United States dollar), from equipment to expatriate salaries. Weak currency translates to higher costs, including PMS.

“Producing locally does not mean selling below cost. Even farmers calculate their production costs before adding margins.”

On the wider economy, Osifo criticised the 2025 federal budget of ₦49 trillion ($30 billion), saying it is insufficient to address Nigeria’s challenges and inadequate for a population of more than 230 million.

“The budget of $30 billion is abysmally low for a country like Nigeria, especially when you compare it with a nation like South Africa, which has a population of about 60 million but operates on a budget of over $120 billion,” he argued.

Osifo stressed the need for Nigeria to harness its abundant natural and human resources to expand its revenue base and reduce dependence on loans.

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