The cost of landing Premium Motor Spirit, or petrol, in Nigeria has dropped by 20.34% over the past three months, now standing at N971.57 per litre.
This reduction reflects a decline in global market prices and improved supply chain conditions.
However, despite this decrease in landing costs, the retail price of petrol in Nigeria has risen sharply by 71.79%, from N617 per litre on August 1, 2024, to N1,060 per litre by November 8, 2024.
According to data from the Major Energy Marketers Association, shared in its Competency Centre Daily Energy Bulletin, oil marketers imported petrol at a cost of N1,219 per litre in August, based on a Brent crude oil price of $80.72 per barrel and an exchange rate of N1,611 to the dollar, and selling petrol at N617 during this period.
But in November, with an estimated landing cost of N971.57, Brent crude price benchmark of $75.57 per barrel and an exchange rate of N1,665.84 per dollar, the product currently sells at N1,060 at the Nigerian National Petroleum Company Limited retail station and N1,180 at stations owned by independent marketers.
The document also revealed that the landing cost of petrol was N945.63 per litre in September 2024 and N903.64 per litre in October 2024. Despite these falling landing costs, the retail price has continued to rise.
This suggests that factors beyond the cost of importing the product, such as ongoing deregulation, taxes, inflation, or exchange rate fluctuations, are contributing to the higher pump prices.
However, experts say they expect the reduction would lead to a corresponding drop in the retail price of petrol.
On Sunday, the Nigeria Labour Congress accused fuel marketers of inflating petrol prices, alleging that the current pump price is much higher than the actual market value.
In a communique issued after its National Executive Council meeting, the NLC argued that Nigerians are being exploited, with citizens enduring increased hardship and hunger.
The NLC attributed this to government policies that are pushing many people into poverty and destitution.
