1 month ago
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- Marketers revealed that the actual cost of petrol is around N1,500 per litre, significantly higher than the current prices at filling stations
- They explained that despite having licenses, they have stopped importing petrol due to the high landing cost
- However, they expressed hope that when the refineries, including Dangote's, become operational, prices will decrease
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Petroleum marketers in Nigeria have declared that Premium Motor Spirit (PMS), commonly known as petrol, should be N1,500 per litre at filling stations.
The marketers explained a significant gap between the cost-reflective price and the current pump price, which ranges from N617 to N820 per litre.
Source: UGC
The Nation reports that Billy Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), noted that many of its members have stopped importing petrol because it is too expensive.
He said:
"Nobody will import the product at around N1,500 and sell it for less than N1,400. This is because you must profit to restock the product."Harry added that importing fuel is no longer profitable due to the naira exchange rate and global oil prices.
He said:
"Even if petrol is imported at 90 cents per litre, turning a profit remains a significant challenge."Why the current price of petrol
Explaining the current price of petrol, which ranges from N620 to N820 per litre depending on location, Harry revealed that the government and the Nigerian National Petroleum Company Limited (NNPCL) are absorbing the shock.
He stressed:
"One of the primary challenges is the difficulty in accessing foreign exchange (forex) from the Central Bank of Nigeria (CBN). "This has made it nearly impossible for marketers to import additional cargo after their initial attempts following the start of deregulation. "To access forex to pay for other fees is such a challenge, and to also be able to place our order became a challenge for the same reason that we can’t access forex from the CBN."Harry also pointed out that the landing cost of petrol in Nigeria is significantly higher than the retail price, further exacerbating the financial strain on marketers.
Harry expressed optimism that local refineries could soon provide relief despite these challenges.
PH refinery is ready to commence production
Earlier, Legit.ng reported that the Independent Petroleum Marketers Association of Nigeria stated that the Port Harcourt refinery is expected to be completed for production in August.
The refinery will be able to produce 10–12 million litres of petroleum products for marketers to purchase.
Source: Legit.ng
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