The National Bureau of Statistics (NBS) has just released its Premium Motor Spirit (PMS or petrol) price watch for September. 
According to the report, the average price paid by consumers across the country for PMS declined by 1.2 percent y/y, but increased fractionally by 0.1 percent m/m to 144.5 naira in September 2017.
Some of the factors that have supported the recent declining trend in PMS include; improving FX liquidity, reduced port charges, as well as strategic interventions by the NNPC (build-up of stocks, relatively lower selling prices by NNPC Mega and affiliate stations, sustained improvement in product supply and remodeling of distribution channels to address sufficiency issues across the country).
We think a more sustainable inducement to lower prices needs to come from improved efficiency of domestic refineries.
We think a more sustainable inducement to lower prices needs to come from improved efficiency of domestic refineries.
Unfortunately, government-owned refineries recorded cumulative operating loss from Jan-July 2017 amid low capacity utilization (11.9 percent as at July).
However, a bright spot remains the private refinery being built by the Dangote Group, with a nameplate capacity of 650,000 barrels per day expected to roll out completely by 2019.
Going forward, we think prices will still hover below the fixed upper price limit for retail pump price, set at 145.0 naira per litre by regulatory authorities.
Going forward, we think prices will still hover below the fixed upper price limit for retail pump price, set at 145.0 naira per litre by regulatory authorities.
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