PENGASSAN initiatives petrol worth hike as crude price rises

The Nationwide President of the Petroleum and Pure Fuel Senior Employees Affiliation of Nigeria, Festus Osifo, has projected that the price of Premium Motor Spirit (petrol) could rise quickly if crude oil continues to extend in worth.

Osifo stated this on the PENGASSAN’s Nationwide Govt Council Assembly on Thursday in Lagos.

He known as for higher trade charge administration, warning of potential worth hikes as crude costs rebound.

“The crude worth rose to $80 per barrel at present. With out trade charge enhancements, PMS costs will improve within the coming weeks,” Osifo acknowledged.

He additionally identified that the trade charge collapse was behind excessive gas costs nationwide, regardless of the graduation of the operations of home refineries, although not at full capacities.

He dismissed misconceptions about refining processes, emphasising that attaining a top quality Premium Motor Spirit requires a number of refining levels.

Osifo, stated, “The outdated Port Harcourt refinery is purposeful, and there’s important progress on the Kaduna and Port Harcourt refineries. Refineries globally have interaction in mixing operations; it’s a regular a part of the method.”

On the excessive price of PMS in Nigeria, the PENGASSAN official stated it was because of the fluctuations within the trade charge, stressing its influence on Nigeria’s economic system.

“The worth of PMS is instantly linked to our weak naira. If the trade charge improves to beneath N1,000 to a greenback, PMS may promote for N500–N600 per litre,” he famous.

Evaluating Nigeria to nations like Venezuela and Zimbabwe, he highlighted the important position of forex administration.

“The oil and fuel enterprise is carried out in USD (United States greenback), from tools to expatriate salaries. Weak forex interprets to larger prices, together with PMS,” he added.

He additionally debunked claims that native refining would drastically decrease costs, explaining that price margins are important.

“Producing regionally doesn’t imply promoting beneath price. Even farmers calculate their manufacturing prices earlier than including margins,” Osifo emphasised.

In one other improvement, Osifo criticised Nigeria’s 2025 funds of ₦49tn (roughly $30bn), labelling it inadequate to deal with the nation’s challenges and insufficient for a nation of over 230 million folks.

“The funds of $30bn is abysmally low for a rustic like Nigeria, particularly whenever you examine it with nations like South Africa, which has a inhabitants of about 60 million however operates on a funds of over $120bn,” he acknowledged.

Osifo emphasised the necessity for Nigeria to harness its ample pure and mineral assets to increase its income base and cut back dependence on loans.