Filling Stations Slash Petrol Pump Price As Naira Appreciates to 7-Month High Against US Dollar
- Some filling stations have decided to adjust their petrol pump prices downwards amid the appreciation of the naira against the US dollar
- This development could potentially lead to reduced transportation costs and alleviate inflationary pressures on households
- The Nigerian currency is currently exchanging against the dollar at its highest level in the last seven months
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The pump price of Premium Motor Spirit, also known as petrol, has dropped from N640 and N660 per litre, which it sold a few weeks ago, to N620 per litre in some locations in Lagos state as naira appreciates significantly against the US dollar.
Also, Legit.ng's visits to some Nigerian National Petroleum Company Limited stations show the product is sold to motorists for around N580 per litre.
Source: Getty Images
Although NNPCL has not officially announced new petrol prices in the country, the adjustments noticed in some filling stations in Lagos are a sign of good news to come amid the high cost of living.
Speaking on the development, Kunle Ademola, a fuel station manager in Lagos, where petrol is sold at N620 per litre, explained that the depot price of petrol is the reason for the reduction from N650 to N620.
"For days, we have been closed and have just received our supply. Although other stations around us sell at N650, we are able to offer it at a cheaper rate because we just got a new supply which is less than what we paid previously."
Naira and fuel price
In an earlier interview, Chinedu Okoronkwo, the former president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), explained to Legit.ng the relationship between the performance of the naira and the fuel price.
Okoronkwo had explained:
"Nigerians are aware that there is no more subsidy, and we have gotten into a new season where the market fundamentals are the ones playing the major role.
"As long as the dollar keeps rising in the foreign exchange market, the price of fuel in the country will continue to skyrocket and it is also in the reverse when naira get stronger."
Naira to dollar exchange rate
On Monday, April 15, 2024, the naira closed at N1,136.04/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM) foreign exchange (FX) market segment.
The new exchange rate represents a 0.6% or N6.34 value increase for naira compared to Friday’s closing rate of N1,142.38/$1.
Similarly, on the black market, the naira appreciated further to N1,000 a dollar, the highest level in seven months.
Dangote refinery crashes diesel price
Earlier, Legit.ng reported that the pump price of diesel has dropped from N1,700 per litre, which it sold a few weeks ago, to about N1,350 per litre in some locations in Nigeria following the product's sale by Dangote Petroleum Refinery.
Findings show that the $20 billion, 650,000 bpd-capacity refinery began pumping diesel to the domestic market on Wednesday, March 27, 2023.
Since it began selling diesel, the company reportedly sold at least one million litres from the refinery to each registered marketer.
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Source: Legit.ng
