Exchange Rate Stability Leads To Lower Fuel Prices, But Fuel Scarcity Looms

Fuel Scarcity Threatens as Dangote Accuses NNPCL of Under-Supplying Crude Oil
The Dangote Petroleum Refinery has raised concerns that the Nigerian government is failing to meet its commitments under the naira-for-crude oil initiative. According to Devakumar Edwin, Vice President of Dangote Industries Limited, the refinery has only received a small fraction of the agreed crude oil supply from NNPCL, which has hindered their ability to increase refined product output.

Since the program launched in October, NNPCL committed to delivering 385,000 barrels per day (bpd) of crude, but Edwin stated that deliveries have fallen far short of that target. “We need 650,000 bpd, but NNPCL has not even provided the agreed minimum of 385,000 bpd,” he said.

Petrol Stations to Lower Prices as Landing Costs Decrease
Nigerians can expect slightly lower petrol prices as the landing cost of petroleum products has dropped. According to data from major marketers and NNPC, the landing cost of petrol has fallen to ₦935.94 per litre, down from ₦977 in the previous report. This reduction is expected to lead to lower petrol prices at filling stations across the country.

Additionally, the landing cost for diesel has also decreased to ₦1,071.8 per litre, with the exchange rate of ₦1,659.37 per dollar contributing to the reduction. The Major Energy Marketers Association of Nigeria (MEMAN) has reported the ex-depot prices for Lagos, which include ₦1,029 per litre for petrol, ₦1,120 per litre for diesel, ₦1,040 for aviation fuel, and ₦1,125 for LPG. The price for Compressed Natural Gas (CNG) ranges between ₦230 and ₦450 per scm.

The stability in exchange rates is being credited with the recent dip in landing costs for petroleum products in Nigeria.