The landing cost of premium motor spirit, commonly known as petrol, has significantly decreased from N1,130 per litre in previous weeks to N981.08 per litre in September 2024, according to data released by the Major Energies Marketers Association of Nigeria (MEMAN) on Thursday.
MEMAN noted that the landing cost began its downward trend in mid-July, falling below N950 in early September. This decline is primarily attributed to fluctuations in global crude oil prices, which dropped to around $70 to $75 per barrel in September 2024, down from $80 in August.
The decrease in petrol landing costs is expected to stimulate more fuel imports by independent marketers. Several independent marketers have already started importing fuel following recent price hikes from the NNPC, which was previously the sole importer of petrol until the government deregulated the downstream sector to encourage competition.
This rise in competition coincides with the Dangote oil refinery ramping up local petrol production after over two decades of reliance on imports. However, the NNPC currently monopolizes the petrol produced at the refinery and sells it at high prices, with petrol prices ranging from N950 to N1,100 depending on location.
The issue of petrol pricing has become a major concern for Nigerians, especially after the recent increase from N600 to N898 per litre. Many are calling for relief.
The House of Representatives has requested that Dangote disclose the price of petrol from his refinery, following claims from the NNPC that he has denied. They have also instructed him to sell directly to independent marketers.
The Nigerian economy relies heavily on petrol, and fluctuations in its price significantly impact the livelihoods of many citizens. The recent pricing set by the NNPC has sparked controversy and may lead to increased competition in the petrol market, which could greatly affect the Nigerian energy sector.
