The cost of landing gasoline rises to 186 ₦, oil to $ 64.
Amid rising oil prices, the landing cost of imported Premium Motor Spirit vehicles (gasoline) in Nigeria increased to 186.33 shekels per liter.
On February 9, PUNCH exclusively announced that the PMS landing value rose to 180 Argentines per liter on February 5, from $ 158.53 per liter on January 7.
The price of crude oil represents a significant portion of the final cost of gasoline, and the federal government’s deregulation of gasoline prices last year means that the price of gasoline will reflect changes in the international oil market.
According to the Petroleum Price Regulatory Agency gasoline price model, the cost of gasoline rose to N186. 33 per liter on February 16, with an expected product price on the N209 pump of 0.33 per liter.
The international benchmark Brent Crude oil closed at $ 63.96 a barrel on February 16, up from $ 59.34 a barrel on February 5.
The rise in crude oil prices pushed the price of gasoline listed on Platts up to $ 560.75 per metric ton (163.08 N per liter using N390 / $ 1) on February 16 from $ 543.25 per metric ton (157. 99 N per liter). ) February 5th.
Other cost elements that make up the disembarkation cost include transportation (N10.29), assistance costs (N4.57), insurance cost (N0.25), Nigeria port authority tax (N2.38), Nigerian Maritime Administration Fee and a security agency (N0. 23), a dock movement fee (N 1.61), a deposit (N2. 58) and financing (N1. 33).
Freight charges increased to $ 35.41 per tonne (10.29 nirvana per liter) last Wednesday from $ 30 0.04 per tonne (8.74 nirvana per liter) on February 5.
The pump price is the sum of the landing cost, the wholesale mark-up, and the trade mark-up. Wholesale markup – N4. 03, while distribution margins include carrier surcharge (N3. 89), retailer (N6. 19), bridge fund (N7. 51), average maritime transport cost (N 0.15) and administration fee (N1. 23).
In addition to changes in world crude oil prices, the exchange rate of the naira against the dollar also affects the cost of imported gasoline.
The cost of gasoline would be higher if we used the 410 / $ 1 rate, at which the naira closed on Monday in the window of the exchange for investors and exporters. Naira closed in the parallel market at 480 / $ 1.
The Nigerian National Petroleum Corporation, which has been the country’s only oil importer in recent years, continues to rely on marketing, despite deregulating the oil sector.
Oil traders recently said they are ready to resume gasoline imports if foreign exchange is available at a competitive rate.
“The discussion we need to have today is how best to maximize the benefits of removing price controls and subsidies while minimizing the negative impact of these actions on our citizens,” said Adetunji Oyebanji, president of the Association of Major Oil Marketers of Nigeria. virtual press conference.
Brent crude against which Nigerian crude was valued rose by $ 1. As of 6:20 pm Monday Nigerian time, $ 67 to $ 64.58 a barrel.
Source: – Punch ng