The landing cost of Premium Motor Spirit (PMS), also known as petrol, in Nigeria has dropped by 20.34% over the last three months, now standing at N971.57 per litre. This decline reflects lower import and distribution expenses due to global market adjustments and improved supply chain conditions.
Despite this reduction, petrol retail prices in Nigeria have surged, rising by N443 (71.79%) from N617 per litre on August 1, 2024, to N1,060 per litre as of November 8, 2024.
Data from the Major Energy Marketers Association’s daily energy bulletin revealed that in August, petrol was imported at N1,219 per litre with Brent crude prices at $80.72 per barrel and an exchange rate of N1,611 per dollar, retailing at N617 per litre. In November, the landing cost decreased to N971.57 per litre with Brent at $75.57 per barrel and an exchange rate of N1,665.84 per dollar. Despite these reductions, the retail price climbed to N1,060 at Nigerian National Petroleum Company Limited stations and N1,180 at independent stations.
September and October also saw landing costs decrease to N945.63 and N903.64 per litre, respectively. However, rising retail prices are attributed to factors such as market deregulation, fluctuating exchange rates, inflation, and broader economic pressures.
Experts expect that reduced landing costs could lead to lower retail prices. Meanwhile, the Nigeria Labour Congress (NLC) has criticized fuel marketers, alleging that pump prices are excessively high compared to actual market value. In a statement following its National Executive Council meeting, the NLC argued that Nigerians are being overcharged, leading to increased hardship. The NLC emphasized its commitment to holding both fuel marketers and the government accountable to safeguard citizens’ welfare amidst mounting economic challenges.
