The landing cost of Premium Motor Spirit (PMS), commonly known as petrol, in Nigeria dropped to N971 per litre in November 2024, marking a 20.23% decrease from the N1,219 per litre recorded in August. This decrease, reported by the Major Energies Marketers Association, is attributed to recent fluctuations in the Naira-dollar exchange rate and changes in global crude oil prices.
By the end of last week, the Naira was trading at N1,678.87 per dollar, while Brent crude stood at $73.63 per barrel, down from $80.72 in August. This has brought some relief to importers, reducing the overall cost of bringing petrol into the country.
Despite the drop in landing costs, petrol prices at the pump remain high, with Nigerian National Petroleum Company Limited (NNPCL) outlets and other filling stations charging between N1,060 and N1,200 per litre. In August 2024, prices had already surged from N617 per litre to their current levels due to earlier currency pressures and global oil dynamics.
The Dangote Refinery, which recently began operations, has set its ex-depot prices between N960 and N990 per litre, depending on transportation mode. However, the Nigeria Labour Congress (NLC) released a statement on Sunday, criticizing the high pump prices, noting that Nigerians are paying more than the current market value for petrol.
As Nigeria faces challenges in balancing fuel affordability with market dynamics, experts suggest that additional policy adjustments may be needed to reflect the recent decrease in landing costs and alleviate pressure on consumers.
