The landing cost of Premium Motor Spirit (PMS), commonly known as petrol, has decreased to N981 per litre, according to data released by the Major Energy Marketers Association of Nigeria (MEMAN) on Thursday. This marks a reduction of over N140 from the previous cost of around N1,130 per litre, driven by a recent dip in global crude oil prices.
The key factors influencing the cost of refined petroleum products, including petrol, are crude oil prices and foreign exchange rates. Brent crude, the global benchmark, traded at an average of $80 per barrel in August 2024 but has fluctuated between $70 and $75 per barrel in September. As of Thursday, it was priced at $71.41 per barrel.
MEMAN highlighted that the decrease in petrol landing costs began in mid-July and continued through early September, despite the ongoing depreciation of the naira against the dollar. The landing cost was calculated using an exchange rate of N1,667.22 per dollar.
Meanwhile, major oil marketers have started importing petrol, following the full deregulation of Nigeria’s downstream oil sector. The Nigerian National Petroleum Company Limited (NNPCL), which previously held a monopoly on petrol imports, now shares the market with other importers, including those leveraging the production from the Dangote Petroleum Refinery.
Vessels carrying around 141 million litres of PMS have reportedly arrived in Nigeria, further contributing to the stability of petrol supply as local production ramps up.
News Editor