The Major Energies Marketers Association of Nigeria has attributed the cessation of petrol imports by its members to the combination of the uncertain landing cost of Premium Motor Spirit (PMS) and fluctuations in foreign exchange rates.
Clement Isong, the Executive Secretary of MEMAN, made this revelation during a webinar for media professionals.Isong highlighted the challenge of determining the precise landing cost of fuel, which complicates the establishment of appropriate product pricing.
He also noted the impact of government policies allowing continuous charges in dollars by the Nigeria Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA) on both the market and consumers.
Additionally, Isong explained that although marketers procure products from the Nigerian National Petroleum Company (NNPC) Limited, retail transactions for products are conducted in dollars, contributing to the escalation of pump prices.
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In July 2023, Emadeb Energy Services Limited made history by importing approximately 27 million litres of petrol into the country following the removal of subsidies.
Subsequently, fuel prices surged to between N600 and N670 per litre after the subsidy removal.
Despite the sharp increase in the exchange rate from N750 per USD in June to N1,602.17 on Thursday, fuel prices have remained relatively stable, indicating the emergence of a new petrol subsidy regime.
As a result, the International Monetary Fund has warned that the country’s expenditure on fuel and electricity subsidies could reach $7 trillion in 2024.
