How much is fuel price today?

How much is fuel price today?: According to analysis by BusinessDay, the current pricing template for petrol in Nigeria suggests that the pump price of petroleum products could range from N478 to N590 per litre, depending on the effective dollar rate set by the Central Bank.

This follows a directive by the new president to reform currency rates. NNPC Limited is currently in discussions with marketers to establish indicative pricing, but government agencies and marketers are urging Nigerians not to panic.

Based on the Central Bank's dollar to naira rate of N467/$1, the pump price of petrol could increase to N390 per litre. If we consider the rate of N600/$1 allowed for airlines to repatriate funds, BusinessDay's calculations indicate an effective pump price of N478 per litre in Lagos.

At the black market rate of N750, the picture changes further. The product cost rises to N503.91 per litre, and additional costs such as trader's margin, freight, NPA port charges, NIMASA, financing costs, jetty storage, and wholesale margin bring the landing cost to N565.34. When retailers' margins, dealer's margins, and transport costs are factored in, the price in Lagos reaches N590.34. Once the petrol is transported across Nigeria, the price could average around N600.

The major components contributing to the landing cost of petrol in Nigeria include product cost, traders and insurance margin, shipping, charges by government agencies, financing and banking charges, and storage charges. These components amount to approximately N358.24 per litre as landing charges. An additional N25 is added, covering retailer margins (N15), dealer's margins (N5), and transport costs (N5). This brings the total costs to N383.24. However, the actual pump price may vary depending on the station and location. With the government's subsidized transport charges, the average pump price could reach N385 per litre using the official exchange rate.

BusinessDay arrived at these conclusions by analyzing the Nigerian government's current pricing template, considering current oil prices and surveys conducted with marketers regarding prices under different oil price and dollar rate scenarios.

The ongoing panic buying exacerbates the problem by creating opportunities for unscrupulous marketers to exploit consumers. Therefore, NNPC Ltd, the marketers group, and the regulator are appealing for calm.

In a statement, the oil regulator assured the public that it is collaborating with the Nigerian National Petroleum Company Limited and other key stakeholders to ensure a smooth transition, avoid disruptions in supply, and safeguard consumers against any form of exploitation.

Contrary to speculations and concerns, the announcement aligns with the provisions of the Petroleum Industry Act (2021), which calls for total deregulation of the petroleum downstream