The cost of landing petrol in Nigeria has decreased by 20.34%, dropping to N971.57 per litre in the past three months, reflecting global market fluctuations and easing supply chain pressures. Despite this, petrol prices at the pump have surged by 71.79%, rising from N617 per litre in August 2024 to N1,060 per litre by November 8, 2024.
According to data from the Major Energy Marketers Association, petrol was imported at N1,219 per litre in August, based on a Brent crude oil price of $80.72 per barrel and an exchange rate of N1,611 per dollar.
Despite this higher landing cost, petrol sold at N617 per litre during that time. By November, with a lower landing cost of N971.57 and a Brent crude price of $75.57 per barrel, the retail price reached N1,060 at the Nigerian National Petroleum Corporation (NNPC) stations and N1,180 at independent stations.
The landing cost of petrol had stood at N945.63 in September and N903.64 in October, showing a decrease. Yet, prices continue to rise due to ongoing fuel market deregulation, fluctuations in the exchange rate, inflation, and Nigeria’s broader economic challenges.
Experts remain hopeful that the drop in landing costs could lead to a reduction in petrol prices. However, the Nigeria Labour Congress (NLC) has accused fuel marketers of inflating prices, pointing out the discrepancy between the actual market value and retail prices.
The NLC also criticized government policies for worsening economic conditions, leading to increased hardship and hunger among Nigerians. The organization has called for greater accountability from both the government and fuel marketers in addressing the country’s economic struggles.
