The estimated landing cost of Premium Motor Spirit (PMS), or petrol, in Nigeria has dropped by 20.34%, now standing at N971.57 per litre. This decrease, observed over the last three months, signals some relief amid global market shifts and supply chain dynamics.
Despite this drop, the retail price of petrol in Nigeria has surged significantly, rising from N617 per litre on August 1, 2024, to N1,060 per litre by November 8, 2024—an increase of N443 or 71.79%.
According to the Major Energy Marketers Association( MEMAN) daily energy bulletin, oil marketers imported petrol at N1,219 per litre in August, when the Brent crude benchmark was $80.72 per barrel, and the exchange rate was N1,611 per dollar. During that time, petrol sold at N617 per litre.
By November, with landing costs at N971.57, a Brent crude price of $75.57 per barrel, and an exchange rate of N1,665.84 per dollar, petrol prices at Nigerian National Petroleum Company Limited retail stations reached N1,060, and N1,180 at independent marketer stations.
Records further show landing costs of N945.63 in September and N903.64 per litre in October 2024. This discrepancy between falling landing costs and rising retail prices is attributed to factors such as deregulation of the fuel market, exchange rate volatility, inflation, and broader economic challenges.
Experts remain hopeful that the decline in landing costs will eventually translate to lower pump prices.
Meanwhile, the Nigeria Labour Congress (NLC) has accused fuel marketers of price inflation, claiming that current pump prices are well above market value. In a communique from its National Executive Council meeting, the NLC stated that many Nigerians are facing increased hardship and poverty due to current government policies. The NLC’s call for action underscores its concern over the economic strain on citizens and its determination to hold both marketers and the government accountable for public welfare.
