Categories: News

Petrol Landing Cost Falls by 20% (See New Price)

The cost of landing Premium Motor Spirit (PMS), or petrol, in Nigeria has dropped by 20.34% over the last three months, now at ₦971.57 per litre, owing to fluctuations in global market prices and supply dynamics.

Despite this decrease, retail petrol prices have surged by 71.79%, rising from ₦617 per litre on August 1, 2024, to ₦1,060 per litre at Nigerian National Petroleum Company Limited (NNPCL) stations as of November 8, 2024, with independent marketers charging as much as ₦1,180 per litre.

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EKO HOT BLOG reports that each data from the Major Energy Marketers Association indicates that in August, petrol was imported at ₦1,219 per litre when Brent crude was priced at $80.72 per barrel, and the exchange rate was ₦1,611 per dollar.

By November, the landing cost dropped to ₦971.57 per litre, with Brent crude priced at $75.57 per barrel and an exchange rate of ₦1,665.84 per dollar. Landing costs had steadily declined through September (₦945.63) and October (₦903.64).

The recent spike in retail prices, despite lower landing costs, is attributed to the ongoing deregulation of the fuel market, exchange rate fluctuations, inflation, and broader economic issues. Experts suggest that the retail prices should reflect these landing cost reductions.

Petrol Landing Cost

In response, the Nigeria Labour Congress (NLC) criticized fuel marketers, accusing them of inflating petrol prices beyond fair market values.

In a statement following its National Executive Council meeting, the NLC claimed that Nigerians face severe hardship due to high petrol prices, which contribute to increased poverty, suffering, and hunger.

The NLC’s communique contended that current government policies are exacerbating the economic burden on citizens.