A fuel attendant handles a fuel pump at a Nigerian National Petroleum Company Ltd. (NNPC) gas station in Lagos, Nigeria, Photographer: Benson Ibeabuchi/Bloomberg via Getty Images
There are concerns over the current state of the downstream sector, as operators confirm that the ongoing foreign exchange crisis and difficulties within the local distribution channel are causing a surge in the cost of Premium Motor Spirit (PMS), commonly known as petrol.
Managing Director of Rainoil Logistics, Jude Nwaulune, disclosed that the estimated landing cost of the product currently stands at approximately N580 per litre at the Calabar region.
He expressed his feelings during a panel session at the ongoing Oil Trading and Logistics (OTL) Africa Week 2023 in Lagos, with the theme, ‘Africa Fuels Update: Overview of Trends and Market Developments.’
Nwaulune said his fears followed existing realities. His words: “Reviewing our operational bases, the landing cost of PMS in Lagos is around N565 per litre. As we move towards the Oghara region, it’s approximately N570 per litre, and towards the Calabar area, it’s similarly within the range of N580 per litre.”
Discussing the transition towards cleaner energy, Nwaulune called for increased investments in Compressed Natural Gas (CNG) and other cleaner fuels, as the country adopts gas to catalyse the economy.
He urged the government to address the numerous challenges facing the country, including insecurity, asset vandalism and community unrest.
Earlier this month, several petroleum product depots were deserted due to a lack of supplies caused by currency volatility. Oil marketers reported that filling stations were closing down in large numbers daily, making the industry increasingly challenging to sustain. They warned that this could result in widespread petrol shortages in the coming months.
The Guardian
