The naira continued to fall against the dollar in the foreign exchange market following another round of fuel price increases by the Nigerian National Petroleum Company Limited.
This recent change represents yet another increase in the pump price of Premium Motor Spirit this year.
According to FMDQ data, the naira dropped considerably on Wednesday, closing at N1625.13 per dollar, down from N1561.76 on Tuesday.
This indicates a loss of N63.37.
This decrease follows the naira’s gains of N73.39 against the dollar on Tuesday.
However, on Wednesday, the currency reversed course, falling to N1895 per dollar from N1780 the day before.
Foreign exchange market turnover also fell, decreasing to $170.60 million on Wednesday from $253.68 million on Tuesday.
In response to growing gasoline costs, the NNPCL announced a new hike, raising petrol prices to N1030 per litre from N898 per litre, marking the second straight increase since September 2024.
An anonymous industry insider stated, “The back-to-back price hikes will most likely add more pressure on the already volatile exchange rate.”
A market analyst added, “We’re seeing the direct impact of NNPCL’s fuel price adjustments on the naira.” With each increase, businesses and consumers face increased prices, affecting demand for foreign exchange.
