Petrol Price Hike: Nigerian Marketers Reveal Shocking Landing Cost
A recent announcement by the Major Energies Marketers Association of Nigeria (MEMAN) has sent shockwaves through the Nigerian energy sector. According to MEMAN, the landing cost of Premium Motor Spirit (petrol) in Nigeria has reached a staggering N1,117 per litre, far above the current pump price of the product.
The revelation was made during a webinar with journalists, where MEMAN disclosed that the landing cost of diesel was N1,157 per litre, while that of aviation fuel was N1,127 per litre. This is the first time that marketers in the industry have publicly disclosed the landing cost of petrol, which has been shrouded in secrecy by the Nigerian National Petroleum Company Limited (NNPC), the sole importer of petrol into Nigeria.
The current pump price of petrol in Nigeria ranges from N617 per litre to N660 per litre, while independent marketers sell the product for N700 per litre or more. This significant disparity has raised questions about the true cost of petrol in Nigeria and whether the government is subsidizing the product.
Experts in the energy sector have also weighed in on the issue. Professor Wumi Iledare, an expert in the energy sector, told our correspondent that the cost of petrol in Nigeria is far below the international price, considering the price of diesel. “The gap between the cost of diesel and petrol in Nigeria is much. It is never like that all over the world. That means something is wrong,” he said.
Professor Adeola Adenikinju, a Professor of Economics at the University of Ibadan and President of the Nigerian Economics Society, also corroborated this view. “The current price of PMS is being subsidised by the government. The government buys at higher rates and sells to us at subsidised rates. That is what they call under-recovery,” he said.
The International Monetary Fund (IMF) has also warned the Nigerian government to remove what it calls implicit fuel and electricity subsidies. In a recent report, the IMF noted that the subsidies would guzzle three per cent of the nation’s Gross Domestic Product in 2024, compared to one per cent in the previous year.
However, the NNPC and the Federal Government have vehemently denied subsidizing the current price of petrol. It remains to be seen how this revelation will impact the Nigerian energy sector and the country’s economy as a whole.
