Petrol Landing Cost Hits New High, Now N800 More Than NNPC Retail Price As Naira Falls

• The new landing cost of petrol is now estimated to have risen above N1,400 per litre as a result of naira depreciation
• Nigerian currency at the official and unofficial market exchanges at above N1,600 against the US dollar
• This means the Nigerian government is working harder to keep the fuel pump price at N600 per litre

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.

It could be only a matter of time before the federal government decides to revisit its decision to cap Premium Motor Spirit (PMS), popularly called petrol prices, around N600 per litre, given the continued depreciation of the Naira and rising crude oil prices.

Findings by the Sun Newspaper indicate that the landing cost of petrol—which includes the product's foreign pricing, transportation, insurance, and other charges—has further increased to N1,424 per liter.

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This is N856 higher than the N568 per litre at which petrol is currently being sold at NNPC retail outlets across the country.

The wide disparity further lends credence to the suspicion that subsidy payments on petrol have returned and are being made under a covert arrangement.

IMF accuse FG of resuming subsidy payment

In February 2024, the International Monetary Fund (IMF) accused the Nigerian government of resuming fuel subsidies through backdoor channels.

In defence, the Group Managing Director of the Nigerian National Petroleum Corporation Limited (NNPCL), Malam Mele Kyari, assured that they are no longer paying subsidy

Speaking to Journalists recently, he said that contrary to insinuations on social media, the federal government was no longer paying subsidy to any person or group for bringing petroleum products into the country.

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His words:

"No subsidy whatsoever. We are recovering our full cost from the products that we import. We sell to the market."

Oil marketers speculate new petrol price

Legit.ng also reported that the national public relations officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN) stated that the price of petrol might rise following the naira crash against the dollar.

IPMAN's spokesman, Ukadike Chinedu, said it is likely that Nigerians may see a hike in the price of the commodity as inflation and scarcity of Forex persist.

The development comes as the Nigerian government revealed on Wednesday, January 31, 2024, that the Port Harcourt Refinery was still undergoing a test run and that products from the facility would soon hit the market.

Source: Legit.ng