The Major Energy Marketers Association of Nigeria (MEMAN) has announced that the current landing cost of Premium Motor Spirit (PMS), commonly known as petrol, has fallen to N971.57 per litre. This represents a 20.34% decrease from the landing cost recorded three months ago.
Despite this decline, retail prices of petrol in Nigeria have seen a significant rise. Since August 1, 2024, when petrol was priced at N617 per litre, the cost has surged by N443, reaching an average of N1,060 per litre as of November 8, 2024—a 71.79% increase.
MEMAN’s competency centre provided insight into these figures, noting fluctuations in global oil prices and exchange rates as key factors. According to the centre, oil marketers in August 2024 imported petrol at N1,219 per litre, when the Brent crude oil price was $80.72 per barrel, and the exchange rate stood at N1,611 per dollar. However, by November, while the estimated landing cost dropped to N971.57 per litre due to a lower Brent price of $75.57 per barrel, the exchange rate had risen to N1,665.84 per dollar.
“This significant increase in the exchange rate has impacted the cost of imports, despite the drop in crude oil prices,” MEMAN stated.
The recent price hike has sparked concerns among Nigerian consumers who are feeling the burden of high fuel costs amidst economic challenges.
