Nigerians will experience a
further reduction in the pump price of Premium Motor Spirit, popularly known as
petrol, in the coming weeks as a result of the recently introduced foreign
exchange policy by the Central Bank of Nigeria, oil marketers have said.
The approved price for
petrol is between N135 and N145 per litre. Currently, no filling station is
dispensing the product at the lowest approved price of N135 as many sell
between N140 and N145. But the marketers are optimistic that the PMS price will
fall considerably from next month due to the latest forex policy.
On May 24, 2016, the
Monetary Policy Committee of the CBN directed the management of the apex bank
to adopt a flexible exchange rate policy in the inter-bank forex management
structure.
The flexible exchange rate
system, which commenced last Monday, is a monetary policy that allows the
exchange rate to be determined by the market through the demand and supply.
The policy had ensured
uniformity in the foreign exchange market, a development that industry experts
and oil marketers said had cut down the huge capital outlay on forex,
particularly when assessed from the black or parallel market.
Some marketers say they were
able to assess forex at N250 to a dollar when the policy was initially
introduced by the central bank, as against the N360 rate at the parallel
market. Saying that at the new rate, which was less than the N288/dollar price
as projected by the Petroleum Product Pricing Regulatory Agency, oil marketers
had more chances to reduce the PMS price and still make a good profit.
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