Landing Cost of Petrol Drops to N981 per Litre, Says MOMAN
The landing cost of Premium Motor Spirit (PMS), commonly referred to as petrol, has decreased to N981 per litre, according to data from the Major Energies Marketers Association of Nigeria (MOMAN).
This represents a drop of over N140 from the previous price of approximately N1,130 per litre observed in recent weeks.
The decline in landing costs is attributed to the recent fall in global crude oil prices. Brent crude, the international oil benchmark, has been trading between $70 and $75 per barrel throughout September 2024. On Thursday, September 26, Brent was priced at $71.41 per barrel, down from $73.46 the day before.
Crude oil prices and foreign exchange rates are crucial factors influencing the cost of refined petroleum products in Nigeria, including petrol, diesel, aviation fuel, and kerosene. In August 2024, Brent crude averaged $80.36 per barrel, according to Statista, a global statistics firm. The price drop has been linked to reduced oil demand from China and anticipated increases in production by the Organisation of Petroleum Exporting Countries (OPEC).
Despite the reduction in landing costs, petrol pump prices across Nigeria remain high. However, major oil marketers have resumed importing PMS, a role previously held by the Nigerian National Petroleum Company Limited (NNPCL). Additionally, the Dangote Petroleum Refinery has started producing and distributing petrol, which is expected to impact market dynamics soon.
This development offers some relief in the ongoing discussion regarding fuel prices in Nigeria, as lower crude prices may indicate potential cost reductions for consumers in the coming months. Nonetheless, market volatility and fluctuating foreign exchange rates continue to pose challenges for the country's energy sect