The Major Energies Marketers Association of Nigeria (MEMAN) has revealed that the landing cost of Premium Motor Spirit (PMS), commonly known as petrol, has surged to N1,117 per litre as of Tuesday, July 16, 2024.
This announcement, made during a webinar with journalists on Wednesday, has sparked widespread concern about a potential hike in fuel prices nationwide.
MEMAN disclosed that the landing cost of diesel has also risen to N1,157 per litre, while aviation fuel now stands at N1,127 per litre.
The figures are a stark contrast between the landing costs and the current pump prices of PMS, which range from N617 to N660 per litre at filling stations operated by the Nigerian National Petroleum Company Limited (NNPC) and major marketers.
Independent marketers are selling PMS at prices above 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.
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.