The estimated cost of landing petrol (Premium Motor Spirit), on Nigeria’s shores has seen a considerable reduction of 20.34 per cent, dropping to N971.57 per litre over the past three months.

This reduction in landing cost, which reflects the price of importation and distribution of the product, indicates some relief in terms of global market fluctuations and supply chain factors.

However, despite this reduction, the retail price of petrol in Nigeria has sharply increased by N443, or 71.79 per cent, from N617 per litre on August 1, 2024, to N1,060 per litre as at November 8, 2024.

According to data released by the Major Energies Marketers Association, in its competency centre daily energy bulletin, oil marketers imported petrol at N1,219 per litre at a Brent crude oil price benchmark of $80.72 per barrel and at an exchange rate of N1,611 per dollar in August while Petrol sold at N617 per litre during this same period.

However, 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, according to THE PUNCH, also showed that the landing cost stood at N945.63 in September 2024 and N903.64 per litre in October 2024.

The increase, 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 the broader economic challenges facing the country.

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, stressing that the pump price is significantly higher than the actual market value.

The NLC in a communique released following its National Executive Council meeting, contended that Nigerians are being exploited, with citizens enduring heightened suffering and hunger due to government policies that are pushing many into destitution.

The organized labour position underscores its growing concerns over the economic strain on Nigerians and its commitment to holding both fuel marketers and the government accountable for citizens’ welfare.

https://punchng.com/petrol-landing-cost-drops-to-n971-litre-report/