The cost of Premium Motor Spirit (petrol) is expected to increase due to a rise in the landing cost of imported PMS. The surge in imported petrol comes as the Dangote refinery suspends selling petroleum products in naira to local marketers. A meeting regarding the naira-for-crude deal was rescheduled, leading to uncertainties in the market.
Data revealed a significant increase in the landing cost of imported petrol, with stakeholders acknowledging the inevitability of price changes in a deregulated market. The landing cost rose by N88 per liter within a week, indicating a potential increase in pump prices.
There are concerns that the imported petrol might reach N1,000 per liter at filling stations due to additional charges and margins. The ongoing dynamics in the market, including the impasse between the Dangote refinery and the Nigerian National Petroleum Company Limited, raise fears of further price hikes.
Various parties have expressed conflicting views on the naira-for-crude deal and its implications on the petroleum sector. Depot owners, filling station operators, and industry experts have differing opinions on the impact of recent developments on fuel pricing and market stability.
The Major Energies Marketers Association of Nigeria emphasized the need for patience and trust during the transition to a deregulated market. They highlighted the importance of robust regulation, industry collaboration, and public transparency to maximize the benefits of this transformation.
Discussions around market stability, consumer protection, and regulatory oversight were central during industry engagements, emphasizing the role of regulatory agencies in ensuring a fair and competitive marketplace. The need for dialogue, thought leadership, and industry collaboration was underscored for sustainable market growth and development.
As uncertainties persist in the petroleum sector, calls have been made for the government to safeguard the economy and protect consumers amid changing market dynamics. The push for transactions in the local currency and concerns over potential economic impacts were highlighted by key industry players.