The cost of delivering Premium Motor Spirit (PMS), or petrol, to Nigeria has dropped by 20.34%, now at N971.57 per litre over the last three months. This decline in landing costs, covering the importation and distribution of petrol, reflects some relief from global market and supply chain shifts.
However, despite this reduction, the retail price of petrol in Nigeria has surged by N443, or 71.79%, rising from N617 per litre on August 1, 2024, to N1,060 per litre by November 8, 2024. Data from the Major Energies Marketers Association shows that in August, oil marketers imported petrol at N1,219 per litre with Brent crude at $80.72 per barrel and an exchange rate of N1,611 per dollar.
By November, the landing cost was N971.57, with Brent crude at $75.57 per barrel and an exchange rate of N1,665.84 per dollar. Despite this, the product’s price rose to N1,060 per litre at NNPCL stations and N1,180 at independent stations.
Landing costs were recorded at N945.63 in September 2024 and N903.64 per litre in October 2024. The price hike, despite lower landing costs, is tied to deregulation, exchange rate fluctuations, inflation, and broader economic issues. Experts hope the reduced landing cost will eventually lower pump prices.
On Sunday, the Nigeria Labour Congress (NLC) accused fuel marketers of inflating prices, asserting that Nigerians are overcharged, leading to hardship. The NLC stressed its commitment to holding both marketers and the government accountable for citizens’ welfare.
