NO MORE 1200/Litre ? Jubilation As Petrol Landing Cost Drops Drastically; See Details
In a major relief for Nigerians, the landing cost of petrol has experienced a significant reduction. According to a report released by the Major Energies Marketers Association of Nigeria (MEMAN), the landing cost of petrol dropped from N981 per litre, recorded on September 25, 2024, to N945. 63 per litre as of September 27. This is a much- welcomed development, as the drop could potentially lead to a reduction in pump prices, offering some respite to citizens.
The recent appreciation of the naira against the dollar is one of the major factors that contributed to this decline. MEMAN data reveals that a dollar was exchanged for N1, 586. 26 on September 27, compared to N1, 667. 22 two days earlier. This improvement in the naira’ s value made it cheaper to import petroleum products, thus decreasing the landing cost.
Additionally, the global benchmark for crude, Brent, saw a reduction in price from $73. 67 per barrel to $72. 45 per barrel in the latest report. The lower cost of crude oil further supported the drop in landing costs. In Lagos, Calabar, and Port Harcourt, the average ex- depot prices of Premium Motor Spirit (PMS) also witnessed a slight decrease.
The drop in landing cost isn’ t limited to petrol alone. MEMAN disclosed that the landing cost of diesel fell from N1, 089 per litre to N1, 068. 04 per litre. Aviation fuel also experienced a reduction, dropping from N1, 117. 34 per litre to N1, 079. 79 per litre.
Meanwhile, the Nigerian National Petroleum Company (NNPC) had earlier stated that with the commencement of sales by the Dangote refinery, new prices for petrol might exceed N1, 000 per litre in certain regions. However, some major marketers in Lagos have continued selling petrol at N870 per litre, despite high prices in other parts of the country.
The drop in landing cost has sparked optimism that the price of petrol might decrease further, especially as the naira strengthens. The Executive Vice President, Downstream at the NNPC, Dapo Segun, emphasized that the price would remain market- driven but assured Nigerians that negotiations with the Dangote refinery have been geared toward ensuring competitive pricing.
Thanks for reading!
