Over the past three months, the estimated cost of landing petrol on Nigeria’s shores is said to have witnessed a considerable reduction of 20.34 per cent, dropping to N971.57 per litre.
This decline in landing cost, which indicates the price of importing and distributing the product, shows some relief in terms of global market fluctuations and supply chain factors.
However, despite this reduction, the retail price of petrol in Nigeria has sharply increased by N443, or 71.79 per cent, from N617 per litre on August 1, 2024, to N1,060 per litre by November 8, 2024.
According to data released by the Major Energies Marketers Association, in its competency centre daily energy bulletin, oil marketers imported petrol at N1,219 per litre at a Brent crude oil price benchmark of $80.72 per barrel and at an exchange rate of N1,611 per dollar in August. Petrol sold at N617 per litre during this period.
But in November, with an estimated landing cost of N971.57, Brent crude price benchmark of $75.57 per barrel and an exchange rate of N1,665.84 per dollar, the product currently sells at N1,060 at the Nigerian National Petroleum Company Limited retail station and N1,180 at stations owned by independent marketers.
The document also showed that the landing cost stood at N945.63 in September 2024 and N903.64 per litre in October 2024.
Reports say this increase, despite a drop in landing costs, can be linked to factors such as the ongoing deregulation of the fuel market, fluctuations in the exchange rate, rising inflation, and the broader economic challenges bedeviling the country.
However, experts say they expect the reduction would lead to a corresponding drop in the retail price of petrol.
On Sunday, November 10 the Nigeria Labour Congress accused fuel marketers of inflating petrol prices, claiming the pump price is significantly higher than the actual market value.
In a communique issued by the Union following its National Executive Council meeting, contended that Nigerians are being exploited, with citizens enduring heightened suffering and hunger as a result of government policies that are pushing many into destitution.
The organization’s call underscores its growing concerns over the economic strain on Nigerians and its commitment to holding both fuel marketers and the government accountable for citizens’ welfare.
