Forex crisis: Why we stopped importing petrol – Marketers

The actual landing cost of Premium Motor Spirit, often known as petrol, and fluctuations in foreign exchange rates, according to the Major Energies Marketers Association of Nigeria, is the reason why its members ceased importing the commodity.

MEMAN’s Executive Secretary, Clement Isong, revealed this information on Thursday at a webinar for media professionals.

According to him, it is challenging to arrive at the precise landing cost of fuel, which makes it difficult to determine the fair pricing for the goods.

“The market and consumers are not immune to government policy that allows Nigeria Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA) continuous charges in dollars,” he said.

Isong also disclosed that although marketers purchase goods from Nigerian National Petroleum Company, NNPC Limited, retail sales of the products are conducted in US dollars, which drives up the price at the pump.

Following the termination of the subsidy, Emadeb Energy Services Limited began importing petrol into the nation in July 2023.

ZINGTIE recalls that fuel prices jumped from N600 to 670 per litre after subsidies were removed from the product last year.

However, the fuel pump price maintained between N600 and 670 despite the rise in the exchange rate from N750 per USD in June to N1,602.17 on Thursday, signalling a new petrol subsidy regime.

As a result, the International Monetary Fund predicted that by 2024, the nation’s fuel and energy subsidies might total $7 trillion.

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