Oil Marketers Propose How FG Can Reduce Petrol Cost by N49 Per Litre for Nigerians
- Marketers have proposed a fuel blending solution that holds promise for a significant reduction in petrol prices
- This innovative blend could bring relief to consumers by potentially lowering the cost of fuel
- Additionally, stakeholders emphasize that this approach offers an opportunity for FG to save costs significantly
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
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.
Source: UGC
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.
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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.
Marketers advocate ethanol-petrol blend
The 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.
Advantages of ethanol in petrol
Ethanol's utilization as a fuel source for internal combustion engines, whether used independently or in conjunction with other fuels, has garnered significant attention primarily due to its potential environmental benefits and long-term economic advantages compared to fossil fuels.
Ethanol can be mixed with petrol in various ratios, ranging from pure ethanol (E100) to blends with anhydrous ethanol, which is ethanol without water.
These blends serve the dual purpose of curbing the consumption of petroleum fuels and mitigating air pollution.
NNPC provides explanation as fuel queues return
In related news, Legit.ng reported that the NNPCL had clarified the presence of fuel queues in various areas, including Lagos, Abuja, and several other regions across the country.
In a statement issued by the retail management on Thursday, October 19, NNPC attributed the queues to a temporary reduction in Depot loadout in Apapa, Lagos, spanning a few days.
The company has urged motorists to refrain from panic buying, assuring that distribution will return to its regular pace in the coming days.
NNPC also confirmed that the underlying issue causing the queues has been resolved."
Source: Legit.ng
