The landing cost of petrol in Nigeria is a crucial factor that influences the retail price of petroleum products.
The former Petroleum Products Pricing Regulatory Agency (PPPRA) provides a comprehensive guide to calculate the landing cost, considering various cost elements.
Cost Elements and Basis for Calculation:
What we should know:
While the belief that PMS landing cost in Nigeria is a complex and multifaceted issue persists, it is essential to recognize that all costs incurred in landing PMS at storage facilities are necessary expenses for the importer.
Despite the pipeline networks being built in the 1970s, Nigeria still boasts one of the most sophisticated systems. With the Nigerian National Petroleum Corporation (NNPC) and the Petroleum Product Marketing Company (PPMC) now operating as private companies under the Petroleum Industry Act (PIA), there is significant revenue generation potential through the revamping of pipelines with partnership funding. This opens vast opportunities in the downstream sector.
This transformation presents attractive prospects for local investors to collaborate with state governments to expand storage capacities, thereby enhancing local logistics networks and improving efficiency in the downstream sector.
Consequently, it will attract both local and foreign direct investments in areas such as coastal terminals, storage and blending facilities, leading to substantial employment opportunities and the emergence of a major oil and gas hub for the Sub-Saharan region.