The Major Energies Marketers Association of Nigeria has reported a decrease in the landing cost of Premium Motor Spirit to N981 per litre, down from approximately N1,130 in previous weeks.
This decline, noted as of September 25, 2024, is attributed to a recent drop in global crude oil prices, according to The Punch.
Crude oil prices and foreign exchange rates are critical factors influencing the costs of refined petroleum products, including petrol, diesel, aviation fuel, and kerosene.
Brent crude, the global benchmark, traded at $71.41 per barrel on Thursday, a decline from $73.46 the previous day.
Since August, when prices averaged over $80 per barrel, Brent has fluctuated between $70 and $75 per barrel this month, reflecting ongoing volatility in the market.
Figures obtained from Statistica, a global statistical firm, showed that in August 2024, the average price of a barrel of Brent was $80.36.
“This was a decrease from the previous month, following the lower oil demand in China and announcements that the Organisation of Petroleum Exporting Countries were expecting to increase production,” the firm stated.
In response to the declining landing cost of petrol and recent hikes in pump prices across Nigeria, major oil marketers have started importing the product.
Previously, the Nigerian National Petroleum Company Limited was the sole importer of petrol into the country.
However, the recent increase in pump prices and the commencement of production by the Dangote Petroleum Refinery have altered the market dynamics, allowing other players to enter the importation space.
It was earlier reported that three major oil marketers were expecting vessels of imported petrol last week barring any unforeseen circumstances.
Dealers had reported that approximately 141 million litres of PMS are being transported to Nigeria by vessels following the full deregulation of the downstream oil sector by the Federal Government.
On Thursday, they confirmed that some of these vessels have already arrived in the country, marking a significant step in addressing the rising demand for petrol amidst fluctuating local prices.
According to the Major Energies Marketers Association of Nigeria (MEMAN), the landing cost of petrol began its downward trend in mid-July, dropping below N950 in early September.
This decline occurred despite the strengthening of the dollar against the naira, with the landing cost calculated at N1,667.22 to one dollar.
The resilience of petrol prices amid currency fluctuations highlights the complexities of the Nigerian fuel market.
