Petrol Landing Cost Drops Significantly — See The New Price

This drop in petrol landing costs, which includes importation and distribution expenses, reflects some relief from recent global market changes and supply chain dynamics.....KINDLY READ THE FULL STORY HERE▶

However, despite the reduction, petrol prices in Nigeria have soared by ₦443 (71.79%)—from ₦617 per litre on August 1, 2024, to ₦1,060 per litre as of November 8, 2024. Independent marketers are selling petrol at even higher rates, up to ₦1,180 per litre.

Data from the Major Energy Marketers Association’s daily bulletin shows that in August, oil marketers imported petrol at a cost of ₦1,219 per litre when Brent crude was at $80.72 per barrel and the exchange rate was ₦1,611 per dollar, with a retail price of ₦617 per litre. By November, the landing cost had dropped to ₦971.57 per litre, with Brent crude at $75.57 per barrel and the exchange rate at ₦1,665.84 per dollar.

Nevertheless, petrol prices have risen to ₦1,060 per litre at Nigerian National Petroleum Company Limited (NNPCL) stations and ₦1,180 per litre at independent outlets. The landing cost stood at ₦945.63 in September and ₦903.64 in October.

The surge in retail prices, despite reduced landing costs, is attributed to factors like ongoing fuel market deregulation, exchange rate volatility, rising inflation, and broader economic challenges.

Experts suggest that lower landing costs should eventually result in reduced retail prices. However, on Sunday, the Nigeria Labour Congress (NLC) accused fuel marketers of inflating prices, arguing that the current pump prices are disproportionately high compared to actual market costs.

In a communique following its National Executive Council meeting, the NLC argued that Nigerians are being overcharged, facing increased hardship and poverty due to policies that have deepened economic distress.