Consumers Paid N76.5bn Extra For Petrol After Deregulation – Investigation

More than N76.5bn has been paid for the purchase of petrol by consumers since the downstream oil sector was deregulated in March this year.

After the Federal Government deregulated the downstream sector of the oil industry on March 19, consumers of Premium Motor Spirit, popularly called petrol, have paid an additional sum of over N76.5bn for the purchase of the commodity.

In March when the Petroleum Products Pricing Regulatory Agency announced the commencement of a deregulated downstream oil sector, the average cost of petrol at filling stations was N125/litre.

Since then the price of the commodity had been fluctuating, moving upwards in most instances.

It, however, recorded marginal reductions in April and June this year, when it was sold at about N123.5/litre.

In May, the pump price was N125/litre but in July, August and September, it increased and traded at average rates of N143/litre, N149/litre and N158/litre respectively.

When compared to the N125/litre cost of petrol in March when the downstream sector was deregulated, consumers paid extra N18, N24 and N33 for petrol in July, August and September respectively.

Findings from the most recent monthly operations report of the Nigerian National Petroleum Corporation, which was for July 2020, showed that petrol supply and consumption across the country was 1.02 billion litres in that month.

The NNPC is currently the major importer of PMS into Nigeria and has maintained this position for more than two years.

Going by the 1.02 billion litres monthly consumption figure and the N18 that was paid extra for petrol in July after the deregulation of the downstream oil sector, it means that a total of N18.36bn was paid extra by consumers in July.

Similarly, using the 1.02 billion litres monthly consumption volume, users of PMS made extra payments of N24.48bn and N33.66bn in August and September respectively.

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