A recent report shows that the estimated landing cost of Premium Motor Spirit (PMS), widely known as petrol, in Nigeria has dropped by 20.34%, reaching N971.57 per litre over the past three months. This decrease, which represents the cost of importing and distributing petrol, suggests a degree of relief driven by global market changes and supply chain dynamics.
Despite this drop in landing costs, the retail price of petrol in Nigeria has surged by N443, or 71.79%, rising from N617 per litre on August 1, 2024, to N1,060 per litre by November 8, 2024.
According to data from the Major Energies Marketers Association’s daily energy bulletin, oil marketers imported petrol at a cost of N1,219 per litre in August, based on a Brent crude price of $80.72 per barrel and an exchange rate of N1,611 per dollar. During this period, petrol retailed at N617 per litre.
By November, with a reduced landing cost of N971.57, Brent crude at $75.57 per barrel, and an exchange rate of N1,665.84 per dollar, the product’s retail price had escalated to N1,060 at Nigerian National Petroleum Company (NNPC) stations and N1,180 at independent stations.
The report also highlighted landing costs of N945.63 in September and N903.64 per litre in October. Despite these falling import costs, prices have risen due to the effects of fuel market deregulation, currency exchange fluctuations, inflation, and broader economic challenges.
Experts predict that a reduction in landing costs could eventually lead to lower pump prices. However, on Sunday, the Nigeria Labour Congress (NLC) accused fuel marketers of unjustly inflating prices, claiming that consumers are paying well above the actual market value.
In a statement from its National Executive Council meeting, the NLC stated that Nigerians face severe hardship due to policies that are increasing economic strain and pushing many into poverty. The organization urged for accountability from both fuel marketers and the government to ease the financial burden on citizens.
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