By David Akinmola
FRESH controversy has erupted in Nigeria’s downstream petroleum sector as oil marketers accused some fuel importers of selling Premium Motor Spirit (PMS), also known as petrol, at prices as high as N1,350 per litre, questioning the rationale for such pricing amid improved foreign exchange liquidity and declining international crude oil prices.
The marketers also challenged the continued issuance of petrol import licences, arguing that with increased domestic refining capacity and improved supply from local refineries, the market should begin to reflect more competitive pump prices.
Industry operators said the current pricing by some importers appears inconsistent with prevailing market fundamentals, particularly following the relative stability of the naira and easing volatility in global oil prices.
According to them, the disparity in pump prices across the country has raised concerns about the efficiency of the deregulated market and the need for greater transparency in product importation and distribution.
The marketers maintained that while deregulation allows market forces to determine prices, operators must ensure that pricing reflects actual import costs and prevailing exchange rates to protect consumers from excessive charges.
They also questioned the necessity of granting additional import licences at a time when local refining capacity is expanding, arguing that the policy objective should be to encourage domestic production and reduce dependence on imported petroleum products.
