A projection by the National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, suggests that the cost of Premium Motor Spirit (petrol) could increase if the price of crude oil continues to rise.
Osifo made this statement during the PENGASSAN’s National Executive Council Meeting held in Lagos.
He highlighted the importance of better exchange rate management to prevent potential price hikes as crude oil prices go up.
Osifo noted, “With crude oil prices reaching $80 per barrel today, without improvements in the exchange rate, the prices of PMS are likely to rise in the near future.”
He also mentioned that the collapse of the exchange rate has contributed to high fuel prices nationwide, despite the operations of domestic refineries not being at full capacity.
Osifo clarified misconceptions about the refining process, emphasizing the necessity of multiple refining stages to produce quality Premium Motor Spirit.
Regarding the high cost of PMS in Nigeria, the PENGASSAN official attributed it to exchange rate fluctuations, underscoring its impact on the country’s economy.
Comparing Nigeria to countries like Venezuela and Zimbabwe, he stressed the critical role of currency management.
Furthermore, Osifo criticized Nigeria’s 2025 budget of ₦49tn (approximately $30bn), stating that it is insufficient to tackle the country’s challenges and inadequate for its population of over 230 million people.
He highlighted the necessity for Nigeria to capitalize on its abundant natural and mineral resources to broaden its revenue sources and reduce reliance on loans.