The landing cost of Premium Motor Spirit, also known as petrol, has decreased to N981/litre, according to data from the Major Energies Marketers Association of Nigeria. This drop is attributed to the recent decline in global crude oil prices.
The petrol landing cost, which was around N1,130 in previous weeks, dropped by over N140 as of September 25, 2024. Global crude oil prices have been fluctuating between $70/barrel and $75/barrel, with Brent crude oil trading at $71.41/barrel on Thursday.
The drop in petrol landing cost comes as major oil marketers commence petrol importation. Meanwhile, the Dangote Petroleum Refinery is ramping up local petrol production, marking a significant shift after over two decades of fuel importation.
According to industry data, the average ex-depot price of petrol varies across regions, ranging from N865 to N1,200 in Lagos, N980 to N1,400 in Calabar, and N1,200 to N1,400 in Port Harcourt.
The landing cost of diesel now stands at N1,089/litre, while aviation fuel is at N1,117.34/litre. The price difference between imported petrol and Dangote refinery petrol is estimated at N83.
The Nigerian National Petroleum Company Limited (NNPC) recently hiked petrol prices to N855-N900/litre after the Dangote refinery unveiling. The NNPC has announced new prices, ranging from N950 in Lagos to N1,019 in Borno.
Experts predict a potential price crash when the naira crude sale begins on October 1, 2024.
Punch.
