According to the report compiled by GlobalPetrolPrices.com, the price of PMS in Nigeria which is ₦617, is 68.62% lower than the average price of petrol in the world during the review period which is ₦1040.41.
The recent move by President Bola Tinubu to deregulate the petroleum sector led to a drastic increment in the prices of petrol across the country.
Before the decision to remove the subsidy, petrol prices stood between ₦190 - ₦215 and then after the subsidy removal, they moved sharply from that amount to ₦537 and most recently, ₦617 as announced by the Nigerian National Petroleum Company Limited (NNPCL).
The development has led to an all-around increase in the price of different commodities and other sectors like transportation.
The analysis which showed the price of petrol across different countries as of July 17, 2023, showed that Nigeria was placed first as the country with the cheapest petrol with ₦617. Liberia came in second place with ₦747.342. Next on the list was Gabon ₦819.493, Sierra Leone ₦862.575, Benin ₦877.974, ₦Ghana ₦892.
Others include Guinea ₦1095, Cote d’Ivoire ₦1101, Burkina Faso ₦1148, Togo ₦945.510, Mali ₦1169.731, ₦Cape Verde ₦1149.102. The difference in price has been linked to the various taxes and subsidies for petrol in the listed countries.
However, just a few of the listed countries own functioning refineries while a few others import refined fuel.
On the fluctuation of fuel prices, the report further revealed four major reasons for price changes. These include Crude oil prices, Exchange rates, Seasonal variations, Refining, Marketing and Distribution costs.
Going by the recent development in the oil sector, Nigeria’s position as the country with the cheapest petrol pump price in West Africa may be threatened as oil marketers have insisted on an upward price review.
According to the chairman of the Major Oil Marketers Association of Nigeria, Tunji Oyebanji, the current prices of petrol in the country were not a true reflection of the market. Oyebanjio told The Punch that in other neighbouring African countries that import petrol, oil prices always reflected current market realities.
“If the prices in neighbouring countries reflect true market prices and our own do not, there is still a danger. Until we all import at the new exchange rate and know what the price is and compare it with our neighbours, we won’t know the exact situation. Likely, the differential will not be so much,” Oyebanji added.