Subsidy Removal: Oil marketers reveal African countries selling petrol higher than Nigeria

According to data from the Major Oil Marketers Association of Nigeria (MOMAN), Nigeria maintains the lowest petrol prices compared to its African neighbours, especially in West Africa.

The data comes despite Nigeria’s removal of petrol subsidy since Bola Tinubu became Nigeria’s President.

Nigeria still sell petrol cheapest in Africa

Following removing fuel subsidies, the Nigeria National Petroleum Company Limited (NNPC) has adjusted the petrol price to N488 per litre and replicated it by other petrol marketers nationwide.

Nairametrics reports that other marketers sell the product for between N500 to N510 per litre, indicating that Nigeria still sells the product at affordable prices compared to other African countries.

The data by MOMAN shows varying petrol prices across 12 countries in Africa.

MOMAN data shows varying fuel pump prices across 12 African countries as follows:

Nigeria: N488 – N570 per liter across states

Cameroon: N906 per liter

Benin Republic: N807.85 per liter

Sierra Leone: N822.95 per liter

Togo: N868.25 per liter

Burkina Faso: N1057 per liter

Ivory Coast: N1011.70 per litre

Ghana: N890.90 per liter

Guinea: N1049.45 per liter

Mali: N1079.65 per liter

Senegal: N1230.65 per liter

Liberia: N762.55 per liter

Current price incentivizes smuggling

Experts believe Nigeria’s fuel could still be smuggled as the price parity incentivizes smuggling across West Africa.

One reason for removing the petrol subsidy in the country is the incentive it provides for smuggling.

The Group Chief Executive Officer of the NNPC, Mele Kyari, stated earlier that subsidy removal would reduce the incentive for smuggling, saying that at the former price of N195, marketers were ferrying the product across borders for higher gains.

Legit.ng reported that there was fear among Nigerians on Tuesday, June 20, 2023, due to the increase in the ex-depot price of petrol by 4.3% to N490.

The development led to petrol selling above N500 per litre and N12 higher than the N488 per litre price in Lagos.

Findings reveal that NNPC still sells the product to major marketers at N446.57 per litre.