Cost Of Petrol Landing Drops Significantly

Cost Of Petrol Landing Drops SignificantlyThe estimated landing cost of Premium Motor Spirit (PMS), commonly known as petrol, in Nigeria has decreased by ₦36 to ₦900.28 per litre as of Thursday, reflecting a 3.62% drop from last week’s ₦936.75 per litre. According to data from the Major Energies Marketers Association of Nigeria (MEMAN), the reduction was also evident earlier this week, with the landing cost briefly dipping to ₦890.43 per litre.....KINDLY READ THE FULL STORY HERE▶

This decline in landing costs is attributed to relief from fluctuations in global market prices and improvements in supply chain dynamics. However, despite this decrease, the retail price of petrol in Nigeria remains unchanged at ₦1,060 per litre. Interestingly, the cost of imported petrol, excluding regulatory fees, is still lower than that of domestically refined petrol.

Between December 10 and December 13, 2024, oil marketers imported a total of 90,308 metric tonnes (121.1 million litres) of petrol. This was facilitated by four vessels that arrived at various ports across the country, including Lagos, Rivers, Cross River, and Delta states:

•AYM Shafa imported 15,000MT (21.12 million litres) on December 10, which arrived at Warri Port aboard the Stellar vessel, managed by Peak Shipping.

•Kriti Ruby delivered 37,308MT (50.03 million litres) on December 12 at Apapa Port, managed by West Atlantic Port Services.

•St Lady Meenah docked at Rivers Port the same day, unloading 23,000MT (30.84 million litres), managed by ULOB.

•Virgo 1 is expected to arrive at Calabar Port today with 15,000MT (20.12 million litres), managed by WAPS at Dozzy Oil and Gas Services Terminal.

In comparison, petrol from the Dangote Refinery is priced at ₦970 per litre, while products from the Port Harcourt Refining Company are priced at ₦1,030 per litre. These domestic prices exceed the cost of imported petrol, raising concerns about the efficiency and economic viability of local refining operations.

The high cost of domestically refined petrol is attributed to several factors, including crude oil prices, exchange rates, and dollar-denominated charges on locally refined products. Brent crude oil prices have recently fluctuated, with the latest benchmark price at $73.52 per barrel, up from $72.06 the previous day.

The Nigerian Ports Authority data reveals consistent petrol imports, contradicting earlier claims from some marketers that they would stop importing petrol in favor of relying on domestic production.

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