Petrol Price in Nigeria Remain Unchanged Despite Landing Cost Dropping to ₦981 per Litre

A Fall in the Global Price of Crude Oil Has Reduced the "Landing Cost" of Petrol in Nigeria

Dangote Refinery Petrol Marketers Margin

According to data released by the Major Energies Marketers Association of Nigeria (MEMAN),  the landing price of petrol (Premium Motor Spirit), has decreased to N981/litre as of September 25, 2024.

The data shows a significant drop of over N140 from its previous landing cost of around N1,130 per litre in prior weeks.

The decline is however attributed to a recent drop in global crude oil prices.

Crude oil prices and foreign exchange rates are key factors influencing the cost of refined petroleum products, including petrol, diesel, and aviation fuel.

In August 2024, Brent crude, the global benchmark for oil, averaged above $80 per barrel.

According to data from Nigeria’s petroleum ministry, since the beginning of September, Brent crude has fluctuated between $70 and $75 per barrel, trading at $71.41 on Thursday, down from $73.46 the previous day.

“This was a decrease from the previous month, following the lower oil demand in China and announcements that the Organisation of Petroleum Exporting Countries (OPEC) was expected to increase production,” noted Statistica, a global statistical firm.

Amid the declining landing cost of petrol, major oil marketers have resumed the importation of PMS.

Previously, the Nigerian National Petroleum Company Limited (NNPC) was the sole importer of petrol before the recent hike in pump prices and the commencement of local production by the Dangote Petroleum Refinery.

The drop in global crude prices will not be reflected in the price pump in Nigeria as petrol is still subsidised, with the price fixed between N950-N1200.

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