Experts in the oil and gas sector have said the current regulated pricing of Premium Motor Spirit in Nigeria, is significantly hindering private-sector refineries from adopting a cost-reflective approach.
Energy expert, Prof. Dayo Ayoade told The Guardian that controlled PMS pricing is part of the problems preventing investments in the refineries, adding that market pricing is still being controlled by the government despite the purported removal of subsidy. On his part, Kelvin Emmanuel said the government is not denying under-recovery for subsidy, stressing that the issue is acknowledging that the true north of PMS consumption is not greater than 35m litres daily, which informs what the government spends on subsidy between pump and landing prices.