Latest findings reveal that the cost of Premium Motor Spirit, or petrol, imported into the country from January to September 2021 had surged by half to N2.52tn from the N1.62tn spent in the same period last year, amid the government’s plans on removing subsidy by early 2022.
According to the National Bureau of Statistics, the number is already higher by 47.37 per cent and 25.37 per cent than the total amount spent in the whole of 2019 and 2020 respectively.
The issue is rooted in the ever-growing concerns of shortage in the country amid the rise in global oil prices. Apart from that, Nigeria still fully relies on imports as refineries in the country remain broken after years.
“We are 100 per cent import-dependent, but a country that imports 100 per cent is in a big problem,” The National Operations Coordinator, Independent Petroleum Marketers Association of Nigeria, Michael Osatuyi told the Punch.
Mr Osatuyi and The Executive Secretary/Chief Executive Officer, Major Oil Marketers Association of Nigeria, Mr Clement Isong blamed the import spike on the oil price rally, smuggling of petrol, and naira devaluation.
Brent crude, the international oil benchmark, skyrocketed to $85.433 per barrel on October 22, from $222 per barrel in 2020.
In the same period, the Nigerian National Petroleum Corporation, the sole importer in the country, has been bearing the subsidy cost at N.103tn, since the initiative resurfaced in January 2021.
This is due to the government not changing the pump price of petrol at N162-N165 per litre, despite the global oil price increase.
