KEY POINTS
- Petrol landing cost dropped 20% to N971 per liter.
- Retail price increased 71% to N1,060 per liter.
- NLC urges accountability for rising petrol prices.
The cost of landing Premium Motor Spirit (petrol) in Nigeria has decreased significantly, dropping 20.34% over the past three months to N971.57 per liter. Landing cost reflects the combined price of importing and distributing petrol. This reduction, attributed to global market fluctuations and supply chain improvements, brings a small measure of relief in import costs.
According to the Major Energies Marketers Association’s daily energy bulletin, the landing cost for petrol stood at N1,219 per liter in August 2024 when the Brent crude oil price averaged $80.72 per barrel and the exchange rate was N1,611 per dollar. During this period, petrol retailed at N617 per liter.
Retail prices surge despite lower import costs
Despite the recent drop in landing costs, retail prices have surged. From August 2024 to early November 2024, the retail price of petrol in Nigeria increased by N443 per liter, or 71.79%, reaching N1,060 per liter at the Nigerian National Petroleum Company Limited (NNPCL) outlets and up to N1,180 per liter at independent stations. Currently, the Brent crude benchmark stands at $75.57 per barrel, with the exchange rate at N1,665.84 per dollar. Yet, lower landing costs have not translated into relief at the pump.
In September and October 2024, the landing costs were N945.63 and N903.64 per liter, respectively, showing a consistent decline. However, the retail price increase remains due to factors like fuel market deregulation, currency fluctuations, rising inflation, and other economic pressures.
NLC accuses fuel marketers of price inflation
Amid this price discrepancy, the Nigeria Labour Congress (NLC) has accused fuel marketers of inflating petrol prices. In a statement following its National Executive Council meeting, the NLC argued that Nigerians are being overcharged for petrol, enduring significant economic hardship due to inflated pump prices and other government policies. The organization has urged fuel marketers and government officials to take responsibility and ensure fair pricing for citizens, citing growing economic strain on households.
The NLC’s statement reflects the widespread frustration among Nigerians, as fuel prices continue to impact daily living costs and increase economic pressures. Experts hope that the reduced landing costs could lead to retail price adjustments, but with current market conditions, this remains uncertain.
