The National Bureau of Statistics (NBS) has released its latest report in its premium motor spirit (PMS) price watch series. The report shows the average monthly price for PMS (petrol/gasoline) paid by households across the country. In May it averaged N150.7/litre (l) for the 36 states of the federation and the FCT, and so above the fixed upper price limit for the retail pump price of N145/l set by the authorities.
The average price of gasoline in May represented a 0.5% m/m increase. Gombe State had the highest price for PMS at N172.5/l while Abuja, Delta, Ekiti, Katsina, Ogun, Osun and Lagos each recorded the lowest with N145.3/l.
The May inflation report shows that for the core sub-index, the highest price increases y/y were recorded in fuels for personal transport such as PMS among others.
According to the Major Oil Marketers Association of Nigeria (MOMAN) the FGN is currently owing petroleum marketers N800bn in subsidy arrears owed on imports over the past three years. This is debatable.
Although fx liquidity has improved, local refining still remains the solution to increased petroleum supply across the country. Nigeria’s current refining capacity utilisation is c.25%. We anticipate some relief for petroleum marketers once the Dangote refinery becomes fully operational; planned refining capacity is 650,000bpd.