As many Nigerians are still struggling to keep up with the rising cost of petrol, data obtained from the National Bureau of Statistics, (NBS), shows that the average price per litre of Premium Motor Spirit, otherwise known as petrol, increased from N185.30 to N264.29 last month.
On a month-on-month basis, it increased by 0.20 percent, from N263.76 in February this year.
President of the Petroleum Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, told newsmen that the persistent increase in petrol prices is due to foreign exchange challenges.
He said, We are converting a dollar-cost product to a local expense in naira; this is the major reason for the continuous increase in petrol prices. As long as the dollar exchange rate is fluctuating, and we do not have access to the official dollar from the Central Bank of Nigeria (CBN) to import, petrol prices will be impacted.
An analysis of the template and a survey of petroleum marketers data shows that the current petrol pricing template, the pump price of the product would hover around N385 per litre in Lagos (using the official exchange rate of N461 per dollar), while it could sell for as much as N590 in Lagos (using the black-market rates of N750/$1).
The pump price of petrol could, however, move between N390 and N400 per litre when it is moved across Nigeria at the official rate. At the black-market rate, it could top N600 per litre, based on how much the government pays as bridging claims to maintain near-uniform pricing across Nigeria.
The major components that constitute petrol landing costs in Nigeria include product cost, traders and insurance margins, shipping, charges by government agencies, financing and banking charges, and storage charges.
Recall that two weeks ago, oil marketers urged the Federal Government over their proposal to build about 30,000 gas stations to cushion the effects of the proposed subsidy removal on petrol. They asked the FG to make the CBN release the N250 billion Intervention Fund for the National Gas Expansion Programme as loans to vehicle owners to acquire gas conversion kits.
The Federal Government has also secured an $800 million grant from the World Bank, as part of its subsidy palliative measures to cushion the effects of subsidy removal in June 2023.
According to NBS, Imo State had the highest average retail price for petrol with N332.67; followed by Taraba, with N330.00; and Borno with N324.55. On the other hand, Benue recorded the lowest average retail price for petrol at N195, followed by Plateau, at N196.79 and Nasarawa, at N197.50.
Analysis by zones showed that the South-East recorded the highest average retail price in March 2023, with N306; while the North-Central had the lowest, with N205.10.
