Oil marketers propose how FG can reduce petrol cost by N49 per litre for Nigerians

Oil marketers suggest that blending ethanol with Premium Motor Spirit (PMS), better known as petrol, can significantly reduce the cost of petrol nationwide, potentially lowering it by N49 per litre.

This situation arises due to the prevailing scarcity issues and the reemergence of extended queues in various regions of the country.

After President Bola Tinubu's decision to eliminate the fuel subsidy in May 2023, the cost of petrol has experienced at least two significant fluctuations.

Currently, petrol prices vary across the country, with rates ranging between N580 and N617 per litre, depending on the location.

This development coincides with oil marketers' warnings of a potential surge in fuel prices to N800 per litre in the forthcoming weeks. They cite the rising landing cost as a critical factor behind this anticipated increase.

Punch reports that the recommendation was made during the BusinessDay/Major Oil Marketers Association of Nigeria Policy Intervention Series on Alternative Fuel in Lagos.

As stated by the marketers, incorporating ethanol into gasoline offers a substantial opportunity for savings for both the Federal Government and consumers.

During the workshop, Clement Isong, the Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), highlighted that adding ethanol to petrol could significantly reduce the pump price.

He said:

"We all know that everyone is currently complaining about the high price of petrol, however, blending ethanol with petrol is one of the ways to bring down prices by up to N49 per litre. This practice can also support local farming and agro-processing industries, particularly using abundant resources like cassava."

Going by Isong's recommendation, if the current official pump price of N617 per litre by the Nigerian National Petroleum Company (NNPC) Limited is reduced by N49, consumers will be able to buy the product for about N568 per litre.

The reduction in production expenses will directly influence the prices borne by consumers at fuel stations, providing a much-needed respite for Nigerians dealing with inflation and the escalating cost of daily life.