The Central Bank of Nigeria, CBN, says it has little or no control over the price of either Premium Motor Spirit, PMS or the dollar.
A Principal Manager with the apex bank, Mr Osagie Clement, disclosed this when he appeared before the House of Representatives adhoc committee investigating the recent hike in the price of fuel.
Mr Clement stated that the demand for PMS has gone down by 30 percent due to its low demand following the hike in the price.
He said on a monthly basis, 150 million dollars is being deployed to PMS importation from CBN intervention.
Mr. Clement urged the federal government to discourage importation and encourage local production, which he said would reduce the current challenges in the nation’s economy.
He however expressed optimism that there are positive times ahead in the next four months for forex to benefit the Nation’s economy.
The Executive Director distribution systems of the Nigeria Midstream and Downstream Petroleum Regulatory Agency NMDPRA, Mr Ogbugo Ukoha, stated that the market forces of demand and supply determine what the prices of products would be.
According to him, the Petroleum Industry Act, PIA, has however given regulators the authority to intervene to avoid cartel building, which is why the agency introduced competition to also deal with illegal profeteering.
The chairman of the committee Babajimi Benson, urged Nigerians to be patient as there is light at the end of the tunnel.
Oduyemi Odumade, Edited By Grace Namiji
Written by: Elizabeth David
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