The Major Energies Marketers Association of Nigeria (MEMAN) revealed that as of July 16, 2024, the landing cost of Premium Motor Spirit (PMS) in Nigeria reached N1,117 per litre, significantly higher than the retail prices across the country.
Despite this high landing cost, which also affects diesel and aviation fuel prices, petrol is sold at NNPC and major marketers’ stations for between N617 to N660 per litre, with independent marketers charging N700 per litre or more.
MEMAN, during a webinar with journalists, emphasized the transparency of their cost data sourced from independent energy price benchmarks.
The association aims to regularly update the public on such figures, often kept confidential by NNPC, the sole importer of petrol into Nigeria.
Experts like Prof. Wumi Iledare and Prof. Adeola Adenikinju suggest that the disparity between landing costs and retail prices indicates a form of subsidy or under-recovery by the government.
They argue that despite NNPC’s denial of direct subsidies, the government likely absorbs the difference to maintain lower retail prices and mitigate public discontent.
The International Monetary Fund (IMF) has urged Nigeria to phase out these implicit fuel subsidies. They warned of their potential economic impact, but government officials maintain their stance against subsidizing current petrol prices amidst ongoing scrutiny and policy debates.