The landing cost of Premium Motor Spirit, popularly called petrol, has dropped to N981/litre, according to data released by the Major Energies Marketers Association of Nigeria on Thursday.
The petrol landing cost, around N1,130 in previous weeks, came down by over N140 as of September 25, 2024, occasioned the recent drop in global crude oil prices.
Crude oil price and the foreign exchange rates are the major factors that determine the cost of refined petroleum products including petrol, diesel, aviation fuel, kerosene, among others.
Brent, the global benchmark for crude, traded above an average of 80/barrel in August 2024, but has kept fluctuating between $70/barrel and $75/barrel since this month.
It was $71.41/barrel on Thursday, down from the $73.46/barrel which it traded the preceding day, industry data sourced from the petroleum ministry showed.
Figures obtained from Statistica, a global statistical firm, showed that in August 2024, the average price of a barrel of Brent was $80.36.
“This was a decrease from the previous month, following the lower oil demand in China and announcements that the Organisation of Petroleum Exporting Countries were expecting to increase production,” the firm stated.
Amid the drop in petrol landing cost and the hike in the pump prices of the commodity across the country, major oil marketers have commenced the importation of the product.
The Nigerian National Petroleum Company Limited used to be the sole importer of petrol into the country before the recent hike in the pump prices of the product and the commencement of its production and release by the Dangote Petroleum Refinery.
On September 18, 2024, newsmen reported that three major oil marketers were expecting vessels of imported petrol last week barring any unforeseen circumstances.
The dealers had stated about 141 million litres of PMS were being conveyed to Nigeria by the vessels following the full deregulation of the downstream oil sector by the Federal Government. They confirmed on Thursday that some of the vessels had arrived in Nigeria.
This is coming as the Dangote oil refinery ramps up local petrol production after over two decades of fuel importation.
According to MEMAN, the landing cost of the product started its downward slope in mid-July, as it also fell below N950 in early September.
It was observed that the fall was despite the rise of the dollar against the naira. The landing cost was calculated using N1,667.22 to a dollar.
However, the average ex-depot price of petrol, according to MEMAN, was between N865 and N1,200 in Lagos; between N980 and N1,400 in Calabar, and it ranged from N1,200 to N1,400 in Port Harcourt as of Wednesday
