Landing Cost of PMS Petrol Drops in Nigeria

The landing cost of Premium Motor Spirit (petrol) has experienced a decrease. As of November 2024, the cost has dropped to N971 per litre, marking a 20.23% reduction from the N1,219 per litre recorded in August 2024.

This information comes from the latest data released by the Major Energies Marketers Association.

The decline in landing costs is attributed to fluctuations in the Naira-dollar exchange rate and changes in international crude oil prices. Specifically, the Naira to Dollar exchange rate was reported at N1678.87, while Brent crude was priced at $73.63 per barrel.

This contrasts with the figures from August 2024, where the exchange rate stood at N1,611 per dollar and Brent crude was $80.72 per barrel.

Despite the drop in landing costs, petrol prices at the pump remain high, ranging between N1060 and N1200 per litre across various retail outlets, including those operated by the Nigerian National Petroleum Company Limited.

The Dangote Refinery has set its ex-depot prices at N960 per litre for ships and N990 per litre for trucks.

The Nigeria Labour Congress has voiced concerns over these elevated pump prices, stating that they exceed the market value.

In a communiqué, the union emphasized the disparity between the reduced landing costs and the high prices consumers face, urging for adjustments that reflect the true market conditions.