Fuel Price May Decline Further as Landing Cost Drops to N774 per Litre

The landing cost of Premium Motor Spirit (PMS), commonly known as petrol, has dropped to N774.82 per litre, which is lower than the ex-depot price of Dangote Refinery’s fuel, currently priced at N825 per litre.

This information comes from the latest Competency Centre Daily Energy Data released by the Major Energies Marketers Association of Nigeria (MEMAN).

According to MEMAN’s data, the estimated import parity into tanks has decreased to N774.82 per litre, marking a reduction of N152.56 or 16.5 percent from the N927.48 per litre recorded on February 21, 2025.

This development coincides with a continued decline in global oil prices, with Brent Crude falling to $70 and US WTI dropping to $66.70 as of Wednesday morning, March 12, 2025, compared to around $76 and $69 in February.

The drop in global crude prices suggests that fuel prices in Nigeria may further decrease to around N800 per litre, down from the current lowest retail prices of N860 and N880 per litre in Lagos and Abuja, respectively, in the coming days.

Earlier in March and last month, the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery had reduced their petrol retail prices to N860 and N880 per litre in Lagos and Abuja.

Reacting to the development, Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated that petrol prices could potentially fall to N800 per litre.

“Crude oil is a major component in the production of fuel, so a further reduction in its price would definitely warrant a drop in petrol price, and it is possible to drop to N800 per litre.”