The Major Energy Marketers Association of Nigeria (MEMAN) has estimated the current landing cost for Premium Motor Spirit (PMS), also known as petrol, at N1,117 per litre.
Besides, the report by MEMAN estimated the current landing cost of automated gas oil (diesel) at N1,157 per litre and aviation turbine kerosene (ATK) at N1,217 per litre.
The estimates include administrative costs and freight costs, among others.
This is coming at a time when petrol is sold for between N585 and N685 per litre at the filling stations, depending on the market and location.
With the landing cost of N1,117 per lire, it shows that there is still a subsidy on the product in order to stabilise the domestic price.
MEMAN, at a webinar held in Lagos, argued that promoting supply diversity would enhance competition in the petroleum industry, which is supported by effectively implementing the Petroleum Industry Act (PIA) 2021 to streamline operations and reduce costs in refining or importing petroleum products.
Key recommendations at the forum included engaging stakeholders to ensure cost recovery for refiners and PMS importers, resisting anti-competitive practices, and enforcing fair competition through NMDPRA and FCCPC.
According to MEMAN, transparency in the downstream value chain and managing price volatility through monthly guided prices is crucial.
“Repositioning and adequately funding NNPCL Pipelines and Storage under a PPP arrangement, encouraging alternative energy sources like LPG, CNG, LNG, and EVs, and recognising the impact of the Dangote Refinery in the deregulation process is also essential.
“Increasing local refining and addressing the challenge of insufficient locally sourced feedstock for domestic refineries will further support these efforts. Recommendations,” the MEMAN’s report
Experts recommended recognising the interconnected roles of various industry stakeholders, including oil producers, refiners, marketers, transporters, consumers, media, NGOs, and development partners.
They advocated for periodic, all-inclusive industry stakeholder meetings to keep the industry informed on various issues.
Promoting sustainability, transparency, compliance, and fair practices, as well as encouraging the private sector to develop and share benchmarks for the landed costs of major crude oil products and other relevant market parameters, are also essential.
They pointed out that supporting the expansion of the industry with local refineries and fostering collaboration for growth is crucial for the sustainability and economic growth of the energy industry.
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