Oil Marketers’ Proposal Could Reduce Petrol Costs by N49 per Litre
In response to the ongoing challenges of rising petrol prices and fuel scarcity in Nigeria, oil marketers have proposed a novel solution that could potentially lower the cost of petrol by as much as N49 per litre. This innovative approach suggests blending ethanol with Premium Motor Spirit (PMS), commonly known as petrol.
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The backdrop of this proposal is the fluctuating petrol prices in the country, driven by President Bola Tinubu’s decision to eliminate the fuel subsidy in May 2023. Currently, petrol prices vary across Nigeria, ranging between N580 and N617 per litre, with fears of a potential surge to N800 per litre in the coming weeks, primarily due to increased landing costs.
The recommendation to blend ethanol with petrol was made during the BusinessDay/Major Oil Marketers Association of Nigeria Policy Intervention Series on Alternative Fuel in Lagos. According to the oil marketers, this innovative approach could lead to significant savings for both the Federal Government and consumers.
Clement Isong, the Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), emphasized that introducing ethanol into petrol has the potential to significantly reduce the pump price. He stated, “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.”
If this proposal is implemented, it could result in a notable reduction in the cost of petrol. For instance, the current official pump price of N617 per litre, as set by the Nigerian National Petroleum Company (NNPC) Limited, could potentially drop to approximately N568 per litre, providing much-needed relief for consumers grappling with inflation and the increasing cost of living.
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Ethanol, when used as a fuel source, offers environmental benefits and long-term economic advantages compared to fossil fuels. It can be blended with petrol in various ratios, curbing petroleum consumption and mitigating air pollution. This proposal, if realized, could mark a significant step toward addressing the ongoing challenges in the country’s fuel sector.
In related news, the Nigerian National Petroleum Company (NNPC) clarified the recent fuel queues seen in several regions, attributing the temporary reduction in Depot loadout in Apapa, Lagos, as the underlying cause. NNPC has urged motorists to avoid panic buying and assured that distribution will return to its regular pace in the coming days.
As the proposal for ethanol-petrol blending gains attention, it may provide a viable solution to mitigate petrol price hikes and fuel-related challenges, offering hope for Nigerian consumers.
