Marketers Project N800/Litre as Imported Petrol’s Cost Drops

Petroleum marketers have projected that the pump price of petrol could reach N800 per litre despite a decline in the landing cost of imported fuel. The projection comes amid concerns over foreign exchange fluctuations, supply chain issues, and ongoing uncertainties in Nigeria’s downstream sector.

Industry sources indicate that while the cost of importing petrol has dropped due to a slight reduction in global crude oil prices, the impact has been offset by the depreciation of the naira and high operational costs. Marketers argue that without a stable exchange rate and government intervention in refining capacity, fuel prices will continue to fluctuate, with potential increases looming.

The rising cost of petrol has fueled discussions over the deregulation of the sector, with some stakeholders advocating for a more competitive market structure that could drive efficiency and reduce retail prices. However, others warn that without functional local refineries, Nigeria remains highly vulnerable to external price shocks.

Consumers are already feeling the strain of high fuel costs, with transportation fares, goods, and services reflecting the impact. Many Nigerians have expressed frustration over the volatility of petrol prices, calling for urgent measures to stabilize the market and protect citizens from further economic hardship.

The Nigerian National Petroleum Company Limited (NNPCL) and regulatory bodies have yet to issue an official response to the marketers’ projections. However, analysts predict that unless there is a significant improvement in forex availability and local refining output, fuel prices could remain on an upward trajectory in the coming months.

As the debate over pricing continues, industry players are calling for a comprehensive review of the fuel subsidy removal policy and strategies to boost domestic refining, which could ultimately ease the pressure on consumers and the economy.