News

BREAKING: Petrol Landing Cost Drops To ₦900 Per Litre

Published

1 month ago

Dec 13, 2024.

The landing cost of Premium Motor Spirit (PMS), also known as petrol, in Nigeria has declined to ₦900.28 per litre as of Thursday, a drop of ₦36 or 3.62% from the previous week’s cost of ₦936.75 per litre.

Data from the Major Energies Marketers Association of Nigeria (MEMAN) further revealed earlier dips this week, reaching as low as ₦890.43 per litre, reflecting improved global market conditions and supply chain adjustments.

EDITOR’S PICKS

EKO HOT BLOG reports that despite this reduction in landing costs, the retail price of petrol remains unchanged at ₦1,060 per litre. Interestingly, imported petrol, excluding regulatory charges, continues to be less expensive than locally refined products.

Between December 10 and December 13, 2024, Nigeria imported 90,308 metric tonnes of petrol, equivalent to 121.1 million litres, through four vessels at ports in Lagos, Rivers, Cross River, and Delta states:

AYM Shafa imported 15,000MT (21.12 million litres) via the Stellar at Warri Port.
Kriti Ruby delivered 37,308MT (50.03 million litres) at Apapa Port.
St Lady Meenah brought in 23,000MT (30.84 million litres) to Rivers Port.
Virgo 1 is expected to offload 15,000MT (20.12 million litres) at Calabar Port.

While imported petrol lands at a lower cost, domestic refining remains notably pricier. The Dangote Refinery’s petrol is priced at ₦970 per litre, while the Port Harcourt Refining Company’s products are quoted at ₦1,030 per litre. These disparities raise concerns about the economic efficiency of local refining operations.

Petrol Landing

Key factors driving high domestic refining costs include crude oil prices, exchange rate fluctuations, and dollar-based operational charges. Brent crude oil, a global benchmark, traded at $73.52 per barrel on Thursday, up from $72.06 the day before.

Contrary to earlier claims by marketers of a potential shift from imports to domestic supply, consistent import activities documented by the Nigerian Ports Authority indicate otherwise. This raises further questions about the competitiveness of domestic refining in addressing Nigeria’s fuel demands.