The estimated cost of landing Premium Motor Spirit (PMS), commonly known as petrol, in Nigeria has seen a significant reduction of 20.34%, dropping to N971.57 per litre over the past three months.
This decline in the landing cost, which includes the price of importing and distributing the product, reflects some relief from global market fluctuations and supply chain factors.
However, despite this reduction, the retail price of petrol in Nigeria has surged by N443, or 71.79%, from N617 per litre on August 1, 2024, to N1,060 per litre by November 8, 2024.
Data released by the Major Energies Marketers Association in its daily energy bulletin shows that in August, oil marketers imported petrol at N1,219 per litre, based on a Brent crude oil price of $80.72 per barrel and an exchange rate of N1,611 per dollar, with the retail price set at N617 per litre.
In contrast, by November, with an estimated landing cost of N971.57, a Brent crude price benchmark of $75.57 per barrel, and an exchange rate of N1,665.84 per dollar, petrol is now sold at N1,060 at the Nigerian National Petroleum Company Limited (NNPCL) retail stations and N1,180 at independent marketers’ stations.
The data also revealed that the landing cost stood at N945.63 in September 2024 and N903.64 per litre in October 2024. This rise in retail price, despite falling landing costs, can be attributed to factors such as the ongoing deregulation of the fuel market, fluctuations in the exchange rate, rising inflation, and broader economic challenges in the country.
Experts suggest that the reduction in landing costs could eventually lead to a corresponding drop in retail prices. However, the Nigeria Labour Congress (NLC) has accused fuel marketers of inflating petrol prices, claiming the current pump price is much higher than the actual market value.
In a communique issued after its National Executive Council meeting, the NLC expressed concern that Nigerians are being exploited, with many enduring increased suffering and hunger due to government policies pushing citizens into hardship.
The NLC’s statement emphasizes its commitment to holding both fuel marketers and the government accountable for the welfare of the people.