The estimated cost of landing Premium Motor Spirit (PMS), commonly known as petrol, in Nigeria has dropped by 20.34%, reaching N971.57 per litre in the past three months, offering a glimmer of relief amid global market and supply chain shifts.
However, despite this decrease, retail prices have surged by N443, or 71.79%, from N617 per litre on August 1, 2024, to N1,060 per litre by November 8, 2024.
According to Data from the Major Energy Marketers Association (MEMA) daily energy bulletin show that oil marketers imported petrol at N1,219 per litre in August when Brent crude was priced at $80.72 per barrel and the exchange rate was N1,611 per dollar, with retail prices at N617 per litre.
By November, with Brent at $75.57 per barrel and the exchange rate at N1,665.84 per dollar, the landing cost had dropped to N971.57 per litre, yet retail prices reached N1,060 at Nigerian National Petroleum Company Limited stations and N1,180 at independent outlets.
The report also indicates that the landing cost stood at N945.63 in September 2024 and N903.64 per litre in October 2024. This 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.
In response to this disparity, on Sunday, the Nigeria Labour Congress (NLC) has accused fuel marketers of inflating petrol prices, claiming the pump price is far above the true market value. Following its National Executive Council meeting, the NLC released a communique condemning the financial strain on Nigerians, asserting that citizens are suffering under policies that drive many into poverty. The NLC has called on the government and fuel marketers to act responsibly, underscoring its commitment to protect Nigerians from economic exploitation.
