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Petrol Landing Prices Drops Massively – Details

Published

3 months ago

Sep 27, 2024.

The landing cost of Premium Motor Spirit (PMS), commonly known as petrol, has significantly decreased to N981 per litre, as reported by the Major Energies Marketers Association of Nigeria (MEMAN) on Thursday.

This reduction marks a substantial drop from the previous price of around N1,130 per litre observed in recent weeks, reflecting a decline of over N140 as of September 25, 2024. The decrease is mainly attributed to the recent fall in global crude oil prices.

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EKO HOT BLOG reports that crude oil prices and foreign exchange rates are critical factors influencing the costs of refined petroleum products, including petrol, diesel, and kerosene. As of this month, Brent crude, the global benchmark, has been fluctuating between 70 and 75 per barrel, closing at
71.41 on Thursday, down from 73.46 the previous day.

In August 2024, the average price was $80.36 per barrel, a decline largely driven by decreased oil demand in China and production increases anticipated by the Organisation of Petroleum Exporting Countries (OPEC).

Despite the falling landing cost of petrol, pump prices across Nigeria have seen an increase.

Major oil marketers have begun importing petrol, a market previously dominated by the Nigerian National Petroleum Company Limited.

Petrol Landing Prices Drops Massively – Details

Following the rise in pump prices and the commencement of production from the Dangote Petroleum Refinery, three major marketers were reported to be expecting shipments of imported petrol.

As of September 18, 2024, it was reported that approximately 141 million litres of PMS were being transported to Nigeria due to the full deregulation of the downstream oil sector. Some vessels have already arrived in the country, coinciding with an increase in local production by the Dangote refinery after decades of reliance on imports.

Interestingly, the landing cost of petrol has continued to decline despite a rise in the dollar’s value against the naira, calculated at N1,667.22 to a dollar.

The average ex-depot prices in various cities currently range from N865 to N1,200 in Lagos, N980 to N1,400 in Calabar, and N1,200 to N1,400 in Port Harcourt as of Wednesday.