The National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, has projected that the cost of Premium Motor Spirit (petrol) may rise soon if crude oil continues to increase in price.
Osifo said this at the PENGASSAN’s National Executive Council Meeting on Thursday in Lagos.
He called for better exchange rate management, warning of potential 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 stated.
He also pointed out that the exchange rate collapse was behind high fuel prices nationwide, despite the commencement of the operations of domestic refineries, though not at full capacities.
He dismissed misconceptions about refining processes, emphasising that achieving a quality Premium Motor Spirit requires multiple refining stages.
Osifo, said, “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.”
On the high cost of PMS in Nigeria, the PENGASSAN official said it was due to the fluctuations in the exchange rate, stressing its impact on Nigeria’s economy.
“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,” he noted.
Comparing Nigeria to countries like Venezuela and Zimbabwe, he highlighted the critical role of currency management.
“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,” he added.
He also debunked claims that local refining would drastically lower prices, explaining that cost margins are essential.
“Producing locally does not mean selling below cost. Even farmers calculate their production costs before adding margins,” Osifo emphasised.
In another development, Osifo criticised Nigeria’s 2025 budget of ₦49tn (approximately $30bn), labelling it insufficient to address the country’s challenges and inadequate for a nation of over 230 million people.
“The budget of $30bn is abysmally low for a country like Nigeria, especially when you compare it with nations like South Africa, which has a population of about 60 million but operates on a budget of over $120bn,” he stated.
Osifo emphasised the need for Nigeria to harness its abundant natural and mineral resources to expand its revenue base and reduce dependence on loans.
