Petrol Landing Cost Drops to N971 per Litre

The estimated cost of landing Premium Motor Spirit (PMS), commonly known as petrol, in Nigeria has dropped significantly by 20.34%, falling to N971.57 per litre over the past three months.

This reduction in landing cost, which reflects the price of importing and distributing the product, signals some relief in response to global market fluctuations and supply chain factors.

However, despite this decrease, the retail price of petrol in Nigeria has risen sharply by N443, or 71.79%, from N617 per litre on August 1, 2024, to N1,060 per litre by November 8, 2024.

According to data from the Major Energy Marketers Association, in its daily energy bulletin, oil marketers imported petrol at N1,219 per litre, based on a Brent crude oil price benchmark of $80.72 per barrel and an exchange rate of N1,611 per dollar in August, while the retail price during that period was N617 per litre.

In November, with an estimated landing cost of N971.57, a Brent crude price benchmark of $75.57 per barrel, and an exchange rate of N1,665.84 per dollar, petrol is currently sold at N1,060 per litre at the Nigerian National Petroleum Company Limited (NNPCL) retail stations. At stations owned by independent marketers, the price is higher, selling at N1,180 per litre.

The document also revealed that the landing cost of petrol was N945.63 in September 2024 and N903.64 per litre in October 2024.

Despite the reduction in landing costs, the increase in retail prices can be attributed to factors such as the ongoing deregulation of the fuel market, fluctuations in the exchange rate, rising inflation, and broader economic challenges facing the country.

However, experts believe that the reduction in landing costs should eventually lead to a corresponding drop in the retail price of petrol.

On Sunday, the Nigeria Labour Congress (NLC) accused fuel marketers of inflating petrol prices, claiming that the pump price is significantly higher than the actual market value.

In a communique released after its National Executive Council meeting, the NLC argued that Nigerians are being exploited, with citizens enduring increased suffering and hunger due to government policies that are pushing many into destitution.

The organization’s statement highlights its growing concerns over the economic strain on Nigerians and its commitment to holding both fuel marketers and the government accountable for the welfare of the people.