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Imported Petrol Landing Cost Drops per Litre; See Price

Published by admin on December 13th, 2024.

Imported Petrol Landing Cost Drops per Litre; See Price

The cost of landing Premium Motor Spirit (PMS), commonly known as petrol, in Nigeria has decreased significantly, falling by N36 to N900.28 per litre on Thursday, according to The FIRST CLASS GISTS.

Data from the Major Oil Marketers Association of Nigeria (MOMAN) revealed that the landing cost, which stood at approximately N936.75 per litre last Thursday, has now dropped by 3.62%. Earlier this week, the price was recorded at N890.43 per litre.

Fresh data shows that oil marketers imported 90,308 metric tonnes of petrol between December 10 and December 13, 2024, equating to approximately 121.1 million litres within just three days, using the conversion factor of 1,341 litres per metric tonne.

This decline in landing cost, which encompasses both importation and distribution expenses, reflects favorable global market conditions and supply chain improvements. However, despite this reduction, the retail price of petrol in Nigeria remains at N1,060 per litre.

The cost of petrol, along with other refined petroleum products, is heavily influenced by crude oil prices and exchange rates. Recently, industry players noted that the high cost of locally refined petrol is driven by dollar charges on locally produced fuel and the cost of importing crude oil. For instance, petrol from the Dangote Petroleum Refinery was priced at N970 per litre, while petrol from the Port Harcourt Refining Company was priced at N1,030 per litre.

The data further indicated that imported fuel, excluding regulatory fees, is now cheaper than domestically refined petrol. The daily spot price of imported fuel was recorded at N900.28 on Thursday, a slight increase from N890 the previous day, while the 30-day average price fell to N945.23 from N946.38 on Wednesday.

Brent crude oil prices were quoted at $73.52 per barrel, up from $72.06 per barrel the previous day, with an exchange rate of N1,533 per dollar. The ex-depot price in Lagos remained between N970 and N1,050 per litre.

In response to the lower prices, oil marketers have imported a total of 121.1 million litres to boost domestic supply. According to documents from the Nigerian Ports Authority, these products arrived via four vessels, which docked at various Nigerian ports, including Apapa in Lagos, Warri in Delta State, Onne in Rivers State, and Calabar in Cross Rivers State.

For example, AYM Shafa imported 15,000 metric tonnes (21.12 million litres) of petrol on December 10, 2024, using the vessel Stellar, which berthed at Warri Port. Another vessel, Kriti Ruby, arrived at Apapa on December 12, carrying 37,308 metric tonnes (50.03 million litres) of petrol, while the St Lady Meenah arrived at Rivers Port on the same day with 23,000 metric tonnes (30.84 million litres).

A further shipment, Virgo 1, is expected to deliver 15,000 metric tonnes (20.12 million litres) to Calabar Port on Friday.

This ongoing importation of petrol contradicts earlier statements by some marketers, who had announced plans to cease imports and prioritize domestic supply.