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In the wake of another fuel price surge initiated by the Nigerian National Petroleum Company Limited, the naira’s value continued to drop against the dollar at the foreign exchange market, intensifying concerns over the currency’s persistent depreciation.
Another rise in the pump price of Premium Motor Spirit has been recorded with this latest adjustment, continuing the upward trend witnessed earlier this year.
FMDQ data shows a notable weakening of the naira, which closed at N1625.13 per dollar on Wednesday, a considerable drop from the N1561.76 rate on Tuesday.
The naira’s latest fall, a depreciation of N63.37, follows a stronger performance on Tuesday, when it appreciated by N73.39 against the dollar.
The currency further weakened on Wednesday, slipping in the black market to N1895 per dollar, down from N1780 recorded on Tuesday.
Foreign exchange market turnover also witnessed a decline, with daily transactions dropping to $170.60 million on Wednesday from the $253.68 million recorded on Tuesday.
Read also: Fuel Hike: NLC Demands Immediate Reversal Of New Fuel Price
In response to the rising fuel costs, the NNPCL announced a fresh hike, increasing the price of petrol to N1030 per litre from N898 per litre, marking the second consecutive increase in September 2024.
An industry insider, speaking anonymously, commented, “The back-to-back price hikes will likely add more pressure on the already volatile exchange rate.”
A market analyst also noted, “We’re seeing the direct impact of NNPCL’s fuel price adjustments on the naira. With each increase, businesses and consumers face higher costs, which in turn affects demand for foreign exchange.”
