Zarama Mustapha, the Deputy President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), shed light on the factors influencing the new pump price of Premium Motor Spirit (petrol) in Nigeria. Mustapha emphasized that the Nigerian National Petrol Company (NNPC) Limited, as the sole importer of petrol, determines the price for oil marketers across the country. He explained that the current retail price of petrol, set by the NNPC, cannot be less than N500 per litre.

To arrive at this price, oil marketers will procure petrol at over N460 per litre from fuel depots. They will then factor in transportation costs and profit margins, which collectively contribute to the final pump price exceeding N500 per litre. Consequently, since the recent adjustment of petrol prices and the removal of subsidies, the selling price of a litre of petrol has already surpassed N500 nationwide. This, in turn, has led to long queues at filling stations and a significant increase in transportation costs, exacerbating the country's traffic situation.

Mustapha further elaborated on the role of the NNPC and its influence on market dynamics. He expressed his belief that the deregulation of the petroleum sector is a recent development and expressed hope that other players would eventually be allowed to participate in product importation, fostering healthy competition with the NNPC. Despite the deregulation, Mustapha asserted that the NNPC is still government-owned, thus retaining a significant influence over the industry.

The removal of subsidy on petrol was announced by President Bola Tinubu during his inaugural speech at the Eagle Square in Abuja on May 29. Tinubu explained that the previous administration, led by Muhammadu Buhari, did not allocate funds for subsidies beyond June in the 2023 budget. Although many Nigerians anticipated the implementation of the new price regime by July 1, the queues at filling stations and retail outlets' hoarding of petrol, along with price hikes, emerged almost immediately after the presidential pronouncement.

Responding to the NNPC's price adjustment, Mustapha expressed surprise at the early implementation and lack of official communication regarding depot prices for independent marketers....

https://kilonshele.com/subsidy-removal-why-n500-litre-is-inevitable/

Ok

The conversation we should be having at this point is, "Why doesn't this country have functional refineries?" The government awarded an Italian company millions of dollars to fix our refinery. How come it's not working yet?

So Dangote will sell at less than N460 NNPCL is currently selling as sole importer. That's because Dangote's refinery is bigger than the average and thus produces at lower than the average cost. He doesn't import and pay for transportation but pipes it down to his refining complex. If Dangote doesn't do long throat, he can sell at N400 or less.
There is likely going to be a convergence of Exchange Rates so it should strengthen the Naira and reduce the per litre of petrol.

.

Make this subsidy wahala kukuma go sef. Since small pikin, government after government dey talk about the same thing.

Make the thing go make we rest

Fuel Subsidy Removal: Buhari Hands Tinubu Banana Peels- Kachikwu
Omo na whao!
Banana Peels kwa

https://kilonshele.com/fuel-subsidy-removal-buhari-hands-tinubu-banana-peels-kachikwu/