The Central Bank of Nigeria (CBN) has said that it has little or no control over the price of either Premium Motor Spirit (PMS) or the dollar. This was disclosed by a Principal Manager with the apex bank, Mr Osagie Clement 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 was being deployed to PMS importation from CBN intervention.
The CBN’s position has been met with some criticism, with some people arguing that the bank should be doing more to control the price of fuel. However, the CBN has defended its position, saying that it is not in a position to control the forces of demand and supply in the market.
The CBN’s statement has implications for both businesses and consumers. Businesses that rely on fuel for their operations will likely see their costs increase, which could lead to higher prices for their goods and services. Consumers will also likely see higher prices at the pump, which could put a strain on their budgets.
The CBN’s statement is also a reminder of the challenges facing the Nigerian economy. The country is currently facing high inflation, which is putting pressure on household incomes. The recent hike in the price of fuel is likely to add to these challenges.
Conclusion:
The CBN’s statement that it has little or no control over the price of PMS or the dollar is a reminder of the challenges facing the Nigerian economy. The country is currently facing high inflation, and the recent hike in the price of fuel is likely to add to these challenges. Businesses and consumers alike will likely see higher prices in the coming months.
