REPORT: PETROL LANDING COST DROPS TO N971 PER LITRE
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Over the last three months, the expected cost of bringing Premium Motor Spirit, also referred to as gasoline, to Nigeria has significantly decreased by 20.34 percent, to N971.57 per liter.
This drop in landing costs, which represent the cost of importing and shipping the product, suggests some respite from supply chain variables and worldwide market swings.
But even with this cut, the retail price of gasoline in Nigeria has skyrocketed, rising from N617 per litre on August 1, 2024, to N1,060 per litre on November 8, 2024, a 71.79 percent rise.
In August, oil marketers imported gasoline at a price of N1,219 a litre, based on the benchmark Brent crude oil price of $80.72 per barrel and an exchange rate of N1,611 per dollar, according to data published by the Major Energies Marketers Association in its competency centre daily energy report. During this time, the price of a liter of gasoline was N617.
However, in November, the product is currently selling for N1,060 at the Nigerian National Petroleum Company Limited retail station and N1,180 at stations owned by independent marketers, with an estimated landing cost of N971.57, a benchmark Brent crude price of $75.57 per barrel, and an exchange rate of N1,665.84 per dollar.
The landing cost was N945.63 per liter in September 2024 and N903.64 per liter in October 2024, according to the paper. Despite declining landing costs, this increase can be ascribed to a number of variables, including the country’s ongoing fuel market liberalization, exchange rate volatility, growing inflation, and other economic difficulties.
Experts, however, predict that the cut will result in a matching decrease in the retail price of gasoline.
On Sunday, the Nigeria Labour Congress accused fuel marketers of inflating petrol prices, claiming 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 organization’s call 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.
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