According to the Petroleum Products Pricing Regulatory Agency (PPPRA) fuel stations across the country are making N4.60 on every litre of petrol sold to final consumers.
They make approximately N184m profit daily from the sales of petrol.
However, the Major Oil Marketers Association of Nigeria, has recently called for an upward review of the profits they get per litre of petrol.
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The marketers had called for adequate margins that would cater for rising overheads in the petroleum downstream business. They said the devaluation of the naira would continue to have a negative impact on the pricing of petroleum products.
The organisation described the country’s petroleum downstream subsector as a poorly regulated sector considering the degree of anomalies that had characterised operations in the sector over the years.
The association urged the complete deregulation of the downstream subsector of the petroleum industry, saying the move would encourage private investments in the subsector, especially in the area building refineries in the country to locally refine crude produced within the shores of Nigeria.
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Obafemi Olawore, the executive secretary of Major Oil Marketers Association of Nigeria said the oil industry needed very strong regulatory frameworks as is the case with some critical sectors of the Nigerian economy.
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The PPPRA puts the current landing cost of the product at N106.79 per litre, while the total cost comprising landing cost and distribution margin was put at N122.28. However, the product still sells for N87 per litre on a pump price basis.
Components that make up the landing cost include: cost and freight (N95.23); traders’ margin (N1.47); lightering expenses (N4.16); NPA (N0.77); financing (N1.37); jetty depot thru put charge (N0.80; and storage charge (N3.00).
Components making up the distribution margins include: retailers (N4.60); transporters (N2.99); dealers (N1.75); bridging fund (N5.85); marine transport average (N0.15); and administration charge N0.15).