Lagos, Nov. 30, 2022 – Proshare, a research and information service company in Lagos, has called for fair play and market efficiency in the downstream sector of Nigeria’s oil and gas industry.
It said that the consensus of its analysts is that a new pricing model should be introduced in the sector to enthrone fairness among operators
In its “Analysts Notes” released in Lagos today, the company said experts were calling for the discontinuation of the preferential treatment being given to NNPC in accessing foreign exchange at the official window.
“This amounts to double subsidies (petrol subsidy and FX subsidy) for the company at the expense of other marketers.
“This distortion has remained a significant impediment to the proper functioning of Nigeria’s downstream oil industry.
“Independent Petroleum Marketers Association of Nigeria (IPMAN) warned that the petrol price could hit N400 per litre against analysts’ expectation of between N200-250 per litre before year-end.
“While IPMAN predicated its outlook on the inability of its members to secure the fuel at the depot, but rather buying from third parties at N220 per litre, analysts had expected an industry consensus to peg the product price at N250 per litre due to the scarcity of FX, logistical issues, and the thin margin of marketers.
“On the whole, the silence of the industry regulators and NNPC Ltd could heighten the scarcity and lift the petrol pump price to about N400 per litre by year-end.
“Analysts maintained that the quick fixes are to raise the pump price to N250 per litre, discontinue the dollar charges by NIMASA and NPA on fuel importation, and for NNPC Ltd to release fuel from their depots,” the company said. (GBN)
