PENGASSAN Predicts Major Shift In Petrol Prices: What Nigerians Should Expect

The National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has warned that the price of Premium Motor Spirit (PMS) could rise soon if crude oil prices continue to climb.....KINDLY READ THE FULL STORY HERE▶

Osifo made this warning during PENGASSAN’s National Executive Council meeting held on Thursday in Lagos. He attributed the potential increase to rising crude oil prices and the impact of the exchange rate.

“The crude price rose to $80 per barrel today. Without improvements in the exchange rate, PMS prices will continue to rise in the coming weeks,” Osifo stated.

He highlighted that the weakening naira significantly contributes to the high cost of PMS, noting that even with the operations of domestic refineries, the exchange rate remains a crucial factor.

Osifo also addressed misconceptions about local refining, emphasizing the complexity of producing quality PMS.

“The old Port Harcourt refinery is functional, and there is significant progress at both the Kaduna and Port Harcourt refineries. Refineries worldwide engage in blending operations; it is a standard part of the process,” he said.

He explained that local refining alone won’t drastically reduce PMS prices, as production costs, including refining and distribution, must still be considered.

“Producing locally does not mean selling below cost. Even farmers factor in their production costs before adding margins,” Osifo stressed.

Osifo emphasized the connection between fuel prices and currency management, stating, “The price of PMS is directly linked to our weak naira. If the exchange rate improves to below ₦1,000 to a dollar, PMS could sell for ₦500–₦600 per litre.”

He compared Nigeria to countries like Venezuela and Zimbabwe, highlighting how oil and gas transactions are conducted in U.S. dollars, which worsens costs in nations with weak currencies.

Osifo also criticized Nigeria’s 2025 budget of ₦49 trillion (approximately $30 billion), describing it as grossly inadequate for a nation of over 230 million people.