Cole Attributes High Fuel Prices To Forex And Import Costs, Despite Refinery Progress

Cole Attributes High Fuel Prices To Forex And Import Costs, Despite Refinery Progress

Tonye Cole, the All Progressives Congress (APC) governorship candidate in Rivers State for the 2023 elections, has outlined why Premium Motor Spirit (PMS) prices in Nigeria are unlikely to fall below ₦700, citing foreign...READ MORE…

exchange and importation costs as key challenges.

Speaking on Channels Television on Tuesday, Cole discussed the complexities of fuel pricing shortly after the Nigerian National Petroleum Company Limited (NNPCL) resumed operations at the Port Harcourt Refinery.

The refinery, now operating at 60% capacity and processing 60,000 barrels of crude daily, is expected to complement production from the soon-to-be-active Warri Refinery. However, Cole stressed that imported machinery and foreign exchange costs still heavily influence pricing.

He explained, “The price of fuel in Nigeria is already lower than the landing cost of imported cargo. This has discouraged many from importing, which has, in turn, reduced pressure on foreign exchange due to lower import volumes.”

Cole added that Nigerians are benefiting from local production since crude is purchased in naira, but significant structural issues remain. He said, “We’re still dealing with foreign exchange components because many of the refinery’s refurbishments relied on machinery and products sourced from abroad.”

Addressing why PMS prices are unlikely to fall below ₦700, Cole remarked, “There are numerous components still being imported, which keeps foreign exchange costs high.”

While acknowledging progress in the petroleum sector, Cole concluded that resolving these structural and economic challenges is crucial for achieving a substantial drop in fuel prices.