Fuel Prices Nigeria

Part of: GIZ International Fuel Price database
Also see: Nigeria Energy Situation

Fuel Pricing Policies

Local Currency:	NGN
Exchange Rate:	148.6 (2010/11/17)
Last Update:

The „Petroleum Products Pricing Regulatory Agency“ (PPPRA) is regulator and supervidor for the downstream market for liquid fuels in Nigeria. The PPPRA website offers plenty of information regarding fuel pricing policies, legislative and administrative framework and actual price compositions (www.pppra-nigeria.org).

PPPRA calculates „expected open market“ retail prices for all liquid fuels. The downstream sector is privatized in Nigeria. While there is a liberal, non-subsidized pricing for diesel, gasonline prices are regulated and immensely subsidized by the government (see 2.). However, an „Expected Open Market Price“ for gasoline (without subsidies) is published as well (see 1., 2-year-trend), so the extent of subsidies on gasoline can be recognized by customers. Pricing templates are published on a daily basis!

The „Petroleum Support Fund“ (PSF) basically finances the subsidy of gasoline. It is also stated, that PSF is being used for flattening volatile world market prices using a slate-calculation: A clearance between actual prices and calculated prices is being done between PSF and the distributors.

The pricing structure includes several taxes; However, all taxes have been zero as of Feb.2011.

The overall cost and pricing structure is quite powerful, as it accounts for future eventualities as the end of fuel subsidies, imposing of taxes and the deregulation or regulation of fuel types.

Fuel Prices and Trends

	Gasoline 95 Octane	Diesel
in USD*
in Local Currency

* benchmark lines: green=US price; grey=price in Spain; red=price of Crude Oil

Fuel Price Composition

Price composition for one litre of Gasoline 95 Octane as of 2011/02/01.

„Vessel Transport/Depot“ costs include vessel financing costs (2.25NGN/litre), lightering costs (3.56 NGN/litre), a Nigerian Ports Authority duty (0,6 NGN/litre), the main depot („Jetty depot“) throughput charge (0,8 NGN/litre) and a main depot storage charge (3,00 NGN/litre).

Diesel (referred to as „AGO“) is not subsidized. Therefore, expected diesel pump prices are about twice the price of gasoline.

There is currently no taxation on diesel and gasoline.

Source: http://www.pppra-nigeria.org/pricingtemplate.asp

At a Glance

Regulation-Price-Matrix	Transparency of Price Composition Transparency of Pricing Mechanism / Monitoring

Sources to the Public

Type of Information	Web-Link / Source
Other Information	http://www.pppra-nigeria.org/index.asp
Price Composition	http://www.pppra-nigeria.org/pricingtemplate.asp
Pump prices and margins	http://www.pppra-nigeria.org/marketfundamentals.asp
Wholesale Prices	http://www.pppra-nigeria.org/marketfundamentals.asp

Contact

Please find more information on GIZ International Fuel Price Database and http://www.giz.de/fuelprices

This is a living document. If you have any comments or suggestions, please feel free to contact us: Armin.Wagner@giz.de