Obasempire reports that the Major Energies Marketers Association of Nigeria (MEMAN) reported that the import cost of Premium Motor Spirit (PMS), commonly called petrol, has climbed to N1,117 per litre as of Tuesday, July 16, 2024.
This revelation, shared during a webinar with journalists on Wednesday, has triggered widespread concerns about potential fuel price hikes nationwide.
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MEMAN also stated that the import cost of diesel has risen to N1,157 per litre, and aviation fuel now stands at N1,127 per litre.
These figures starkly contrast with the current retail prices of PMS, which range from N617 to N660 per litre at Nigerian National Petroleum Company Limited (NNPC) and major marketer stations.
Independent marketers are selling PMS at prices exceeding N700 per litre.
Despite the NNPC’s consistent denial of subsidizing PMS, MEMAN’s Executive Secretary, Clement Isong, clarified that the landing costs were sourced from independent energy price benchmark providers.
Isong stated that MEMAN would continue to provide regular updates on landing costs to keep the public informed.
Meanwhile, energy sector experts have voiced concerns over the current pricing dynamics.
Prof. Wumi Iledare noted that the substantial price gap between diesel and petrol in Nigeria is atypical and suggested that some form of subsidy or under-recovery might be in place.
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He indicated that considering the current exchange rate, the price of petrol should be closer to 80 per cent of the price of diesel.
Prof. Adeola Adenikinju, President of the Nigerian Economics Society, also stated that the government is effectively subsidizing the current price of PMS.
He told Punch that the government purchases PMS at higher rates and sells it at lower rates, resulting in what is referred to as under-recovery.
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