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Petrol Landing Cost Drops; See Current Price per Litre

Published by Tope Fakinlede on November 11th, 2024.

Petrol Landing Cost Drops; See Current Price per Litre

The cost of importing Premium Motor Spirit (PMS), commonly known as petrol, into Nigeria has seen a significant decrease of 20.34%, dropping to N971.57 per litre in the past three months. This reduction reflects a shift in global market dynamics and supply chain conditions.

Despite this decline in the landing cost, the retail price of petrol in the country has surged by N443, representing a 71.79% increase, rising from N617 per litre on August 1, 2024, to N1,060 per litre by November 8, 2024.

According to data from the Major Oil Marketers Association of Nigeria (MOMAN), the cost of importing petrol in August 2024 was N1,219 per litre, based on a Brent crude price of $80.72 per barrel and an exchange rate of N1,611 to the dollar. During that time, the retail price was N617 per litre. By November, with a landing cost of N971.57, a crude price of $75.57 per barrel, and an exchange rate of N1,665.84 per dollar, the price at the Nigerian National Petroleum Corporation (NNPC) stations was N1,060 per litre, while independent marketers charged up to N1,180 per litre.

Further analysis shows that the landing cost was N945.63 in September 2024 and N903.64 per litre in October 2024. Despite these falling costs, the retail price has continued to climb, largely due to ongoing fuel market deregulation, exchange rate volatility, inflationary pressures, and the broader economic challenges facing Nigeria.

Experts have expressed expectations that the lower landing cost should eventually lead to a decrease in petrol prices at the pump. However, these price changes have yet to materialize, raising concerns among the public.

The Nigeria Labour Congress (NLC), in a statement following its National Executive Council meeting, accused fuel marketers of artificially inflating prices. The union argued that Nigerians are being unfairly burdened, with many facing increased hardship due to policies that have pushed them into deeper poverty. The NLC has called for accountability from both fuel marketers and the government, emphasizing the urgent need to address the economic strain on the population.