Prices of Premium Motor Spirit (PMS), diesel and Kerosene are expected to remain on the high side despite the coming on board of the Port Harcourt refinery as well as the Dangote refinery, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has said.
According to Festus Osifo, president of the association, the high exchange rate at over N1600/$1, which has continued to impact the prices of commodities in the country, also plays a role in the prices of petroleum products.
“Production starting in these refineries will create jobs, but overall, will it significantly bring down the price of PMS, AGO, and DPK? The answer is no and the reason is because of the weakness of our currency. So, the greatest challenge is the weakness of our currency and we have advocated this over and over and over again.
“With Naira exchanging for $1 to about N1,700, the cost of goods in the market is going to be high. Remember, when Naira was exchanged for $1/N316, the cost of diesel was around N215 and the cost of kerosene was also low. So what has made those costs significantly high today is our exchange rate and it is not limited to just petroleum products alone.
“Today, if you want to buy a phone, you know what the cost is. If you want to buy a laptop, you know what the cost is, if you want to buy a television, air-conditioning unit, you know what the costs are and it is because of our exchange rate. So that is the greatest devil in the room,” he said.
Osifo, who addressed the National Executive Council (NEC) meeting of the Association in Abuja on Tuesday, said that Nigeria is currently faced with several issues that demands urgent attention to fix.
He decried that despite being blessed with fertile land and a vibrant population, Nigeria still faces food crisis of immense proportion, which is impacting the lives of the citizens and threatening the overall society.
Referencing the Cadre Harmonisé Report for October 2024, Osifo noted that at least 33.1 million people in 26 states and the FCT will face food and nutrition crises between June and August 2025, noting that the consequences are stark and disastrous and should not be left unattended.
“PENGASSAN demands that to address the looming food crisis, the Nigerian government must take measures to support both commercial and smallholder farmers, who are the backbone of the food system. These measures should include providing access to credit, improved seeds, fertilizers, and technology, strengthening farmer cooperatives and providing market linkages to ensure fair prices for their produce.
“Additionally, the government must enhance infrastructure by investing in better roads, storage facilities, and irrigation systems to reduce post-harvest losses and ensure efficient food distribution. The government must provide a secure environment that will enable farmers who abandoned their farms to return back,” he said.
Speaking on the performance of the power sector, Osifo stated that Nigeria’s continuous decline in power generation and transmission is profoundly disappointing and a significant cause of the poor quality of life as well as the economic downturn currently being experienced in the country.
“Every Nigerian knows and feels the consequences of our poor power supply and deteriorating energy sector. One would have expected an improvement in power supply with the increase in tariffs, but with dismay, we have witnessed the national grid collapse over 6 times this year alone. It is the worst frequency in our country’s history. Are we making progress or regression? We cannot continue like this.”
He therefore stressed on the need for a decentralised power transmission system, involving state governments and private sector players.
“A Good example is what we have in Abia State where a private sector-led initiative has helped in providing constant power to some sections of the state,” he added.
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