The Major Energies Marketers Association of Nigeria (MEMAN) has revealed that the landing cost of imported premium motor spirit (PMS), commonly known as petrol, fell to N797.66 per litre on Monday, marking a notable decline of N20.16 from N817.82 recorded on March 14. This reduction, detailed in MEMAN’s daily energy bulletin, reflects a shifting landscape in Nigeria’s fuel market, driven by global and domestic factors.
On-the-Spot Rates and 30-Day Average Decline
The bulletin further disclosed that the on-the-spot rate at the NPSC-NOJ terminal mirrored this downward trend, dropping to N797.73 per litre from N817.9 the previous week. Over a 30-day period, the average landing cost also eased slightly, moving from N854.15 per litre to N851.76. These figures underscore a consistent reduction in costs, offering a glimmer of relief amid fluctuating global oil dynamics.
Brent Crude Rises, Forex Holds Steady
MEMAN attributed the pricing shifts to a combination of international and local influences. Brent crude, a key benchmark for Nigeria’s oil market, edged up to $70.58 per barrel from $69.88 on March 14. Meanwhile, the exchange rate remained relatively stable at N1,517.93 per dollar, with minimal fluctuations observed in recent weeks. The marketers calculated the product quantity at 38,000 metric tonnes, providing a clear basis for their cost assessments.
Global Volatility and Cost-Saving Strategies
The report emphasized the volatile nature of international petroleum product pricing, citing geopolitical tensions in the Middle East, China’s economic dynamics, seasonal shifts, production levels, and other global factors as key drivers. “Landing cost, being fundamentally influenced by these elements, is likely to change several times intra-day,” MEMAN noted. However, the group highlighted opportunities for savings through strategic measures such as negotiation, improved access to foreign exchange, and logistics efficiencies such as eliminating ship-to-ship (STS) transfers or opting for larger cargo deliveries.
Dangote Refinery Adjusts Ex-Depot Price
Dangote Petroleum Refinery reduced its ex-depot price at its loading gantry from N825 per litre to N815, according to MEMAN. This follows the refinery’s March 2 announcement of plans to refund oil marketers who purchased petrol at rates exceeding advertised prices from key partners, including AP (Ardova Plc), Heyden, and MRS Oil. Earlier, Dangote had slashed its ex-depot price to N825, signaling a proactive approach to aligning costs with market trends.
Implications for Nigeria’s Fuel Market
The combined reduction in imported PMS landing costs and Dangote’s ex-depot pricing reflects a dynamic response to both global volatility and domestic supply chain adjustments. As Nigeria navigates these economic currents, MEMAN’s insights suggest that operational efficiencies and stable forex access could further stabilize fuel prices, offering potential benefits to marketers and consumers alike. With Brent crude ticking upward and geopolitical factors in play, the market remains poised for continued shifts in the near term.
