Major Oil Marketers Association of Nigeria (MOMAN) said yesterday that international price of crude oil and exchange rate constitutes over 80 percent of cost of imported fuel.
It explained that the remaining 20 percent is made up of statutory dues, distribution costs and margins.
MOMAN, while reiterating its support for the deregulation of the oil and gas sector, said the policy promises a transparent and level playing field.
It added in a statement after its virtual meeting that in a liberalised market, the pump price of petrol should accurately reflect current economic realities.
The statement by MOMAN Chairman, Olu Adeosun, partly reads,
“In recent months, the price of PMS has remained relatively stable. On 30 May 2023, Platts reported a price of $827 per metric ton (MT), and on 14 July 2023, it was $859.25 per MT.
“However, there has been a significant increase in foreign exchange rates. “MOMAN can infer from its calculations in May that the NNPCL determined its pump price using an exchange rate of about N630 to the US dollar, while banks reported an exchange rate of approximately N650 on the Investors and Exporters (I&E) window.
“As of today, the liquid exchange rate is close to N825 to the dollar. This devaluation adds N100 to the cost of importing a single litre of PMS.
“Consequently, an increase in the pump prices of petrol should be expected.”