The estimated cost of landing Premium Motor Spirit (PMS), commonly known as petrol, has dropped by 20.34%, now standing at N971.57 per litre, reflecting improvements in global market conditions and supply chain costs over the past three months. Despite this decrease, 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 from the Major Energies Marketers Association, in its daily energy bulletin, reveals that oil marketers imported petrol at N1,219 per litre, based on a Brent Crude price of $80.72 per barrel and an exchange rate of N1,611 per dollar in August. During this period, the retail price was N617 per litre.
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 stood at 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. Experts attribute this increase to factors such as the ongoing deregulation of the fuel market, exchange rate fluctuations, rising inflation, and broader economic challenges.
Despite the drop in landing costs, petrol prices in Nigeria remain high, ranging from N1,060 per litre to N1,200 per litre at Nigerian National Petroleum Company Limited (NNPC) stations and even higher prices of N1,180 at independent fuel stations.
A communiqué released by the Nigeria Labour Congress (NLC) highlighted that the pump price of petrol exceeds its market value. The NLC contended that Nigerians are being exploited, with citizens facing increased suffering and hunger due to government policies pushing many into destitution. The statement underscores the NLC’s growing concerns about the economic hardship Nigerians are enduring and its commitment to holding both fuel marketers and the government accountable for the welfare of the people.
