Nigerians continue to face severe petrol scarcity as the landing cost of Premium Motor Spirit (PMS) has soared to ₦978 per litre. With the black-market exchange rate at ₦1,500 per dollar, the landing cost, including international price, shipping, and insurance, has jumped significantly from ₦720 per litre in October 2023. This increase excludes additional charges from the Nigerian Ports Authority, vessel fees, and distribution costs, which further elevate prices.
The naira recently hit a three-month low of ₦1,530 per dollar on the parallel market, exacerbating the petrol price crisis. Despite President Bola Tinubu’s announcement ending petrol subsidies on May 29, 2023, pump prices have surged from below ₦190 per litre to over ₦600 per litre. Finance Minister Wale Edun indicated that the removal of subsidies is ongoing, with projected costs rising to ₦5.4 trillion in 2024.
Long queues persisted at petrol stations, with some retail outlets in Abuja, Nasarawa, and Niger raising prices to ₦900 per litre. The NNPC Limited attributed the queues to recent thunderstorms and logistical issues at fuel-loading jetties but assured stakeholders that efforts are underway to resolve the situation. Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, emphasized the need for collaboration between the government, NNPC, and downstream sector operators to achieve a lasting solution.