Politics
Naira Gains lead To Reduction In Fuel Landing Costs
Naira Gains lead To Reduction In Fuel Landing Costs....KINDLY READ THE FULL STORY HERE▶
The landing cost of petrol has decreased from N981 per litre on September 25, 2024, to N945.63 per litre as of September 27. This information was released by the Major Energies Marketers Association of Nigeria (MEMAN) on Monday……CONTINUE READING
The reduction in petrol landing cost is linked to the recent appreciation of the naira against the US dollar. According to the MEMAN report, the exchange rate for the naira improved from N1,667.22 to N1,586.26 between September 25 and 27.
Additionally, the global benchmark for crude oil, Brent, also dropped from $73.67 per barrel to $72.45 per barrel, which likely contributed to the reduction in the landing cost of imported petrol.
The report also noted a marginal decrease in the ex-depot prices of Premium Motor Spirit (PMS) in cities such as Lagos, Calabar, and Port Harcourt. Diesel prices also fell slightly, from N1,089 per litre to N1,068.04 per litre, and aviation fuel dropped from N1,117.34 per litre to N1,079.79 per litre.
In a comparison between imported petrol and locally produced fuel from the Dangote refinery, the price difference is estimated to be less than N46 per litre based on NNPC’s claim that it purchased Dangote fuel at N898 per litre.
The Nigerian National Petroleum Company (NNPC) had raised petrol pump prices on the same day that the Dangote refinery unveiled its locally produced petrol. NNPC announced that petrol sourced from the Dangote refinery would be sold at prices exceeding N1,000 per litre in some northern regions, such as Borno State, where it may reach as high as N1,019 per litre. In other northern states like Abuja, Sokoto, and Kano, prices could be around N999.22 per litre, while in southern regions like Oyo and Rivers, it would be N960 per litre. The lowest price of N950 per litre was recorded in Lagos and surrounding areas.
Despite petrol prices exceeding N1,200 in some areas, major marketers were still selling petrol at around N870 per litre in Lagos.
During a recent media chat, NNPC’s Executive Vice President, Downstream, Dapo Segun, explained that even after negotiations with Dangote refinery management, petrol pricing remained market-driven. He mentioned that negotiations over the pricing of petrol from the Dangote refinery took over a week to finalize, with both sides offering counterproposals until a final agreement was reached.
Segun also reiterated that NNPC would only lift petrol from the Dangote refinery if it was cheaper than imported fuel.
Meanwhile, as the sale of petrol to NNPC from the Dangote refinery continues, Nigerians remain hopeful that the commencement of naira crude sales on October 1, 2024, will lead to a significant drop in petrol prices.
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