“Fuel Landing Costs Drop by 20% in Nigeria, But Petrol Prices Surge by 72%: Check Out the New Price!”

The cost of landing Premium Motor Spirit (PMS), commonly known as petrol, in Nigeria has decreased by 20.34%, dropping to ₦971.57 per litre over the past three months. This reduction in the estimated cost, which includes both importation and distribution expenses, reflects a relief from global market fluctuations and supply chain dynamics.

However, despite the drop in landing costs, the retail price of petrol has seen a sharp rise. As of November 8, 2024, the price has surged by ₦443 per litre, or 71.79%, increasing from ₦617 per litre on August 1, 2024, to ₦1,060 per litre. Independent marketers are charging even higher prices, with some selling petrol for up to ₦1,180 per litre.

According to data from the Major Energy Marketers Association’s daily energy bulletin, in August 2024, oil marketers imported petrol at ₦1,219 per litre when Brent crude was priced at $80.72 per barrel, and the exchange rate stood at ₦1,611 per dollar. At this time, the retail price was ₦617 per litre. By November, despite a drop in landing costs to ₦971.57 per litre, the retail price rose, with Brent crude now priced at $75.57 per barrel and the exchange rate at ₦1,665.84 per dollar.

The landing cost of petrol also decreased in September and October 2024, reaching ₦945.63 and ₦903.64 per litre, respectively. However, this did not translate into a reduction in retail prices. The price hike is primarily attributed to factors such as the continued deregulation of the fuel market, fluctuations in the exchange rate, rising inflation, and broader economic challenges in the country.

Experts had expected that the decline in landing costs would lead to lower retail prices, but the surge in pump prices has sparked controversy. On Sunday, the Nigeria Labour Congress (NLC) accused fuel marketers of inflating petrol prices, arguing that the current pump price is disproportionately high compared to the actual market value. The NLC has criticized government policies, claiming that they are exacerbating the suffering of Nigerians, pushing many further into poverty.

This ongoing issue highlights the disconnect between the cost of fuel imports and the retail price at the pump, leaving many Nigerians questioning the fairness of the pricing system in the context of the country’s economic challenges.