The landing cost of Premium Motor Spirit, or petrol, in Nigeria has decreased significantly, dropping by 20.34 percent to N971.57 per litre over the past three months.

This reduction, which covers importation and distribution costs, suggests some relief from global market fluctuations and supply chain pressures.

However, despite the lower landing cost, the retail price of petrol in Nigeria has surged, rising by N443, or 71.79 percent, from N617 per litre on August 1, 2024, to N1,060 per litre as of November 8, 2024.

Data from the Major Oil Marketers Association of Nigeria (MOMAN), published in its daily energy bulletin, reveals that in August, oil marketers imported petrol at N1,219 per litre, based on a Brent crude oil price of $80.72 per barrel and an exchange rate of N1,611 per dollar.

Despite this high landing cost, petrol retailed at N617 per litre during the same period.

By November, the estimated landing cost dropped to N971.57 per litre, with Brent crude at $75.57 per barrel and an exchange rate of N1,665.84 per dollar.

However, retail prices rose, reaching N1,060 at Nigerian National Petroleum Company Limited stations and N1,180 at independent outlets.

The report also noted that the landing cost stood at N945.63 per litre in September and N903.64 per litre in October 2024.

Analysts attribute the price hike, despite lower landing costs, to factors such as fuel market deregulation, exchange rate volatility, inflation, and broader economic pressures.

Experts, however, express hope that the reduced landing costs will eventually translate into lower retail prices.

On Sunday, the Nigeria Labour Congress (NLC) accused fuel marketers of inflating petrol prices, arguing that the current pump price is far above the actual market value.

In a communique issued after its National Executive Council meeting, the NLC claimed that Nigerians are being exploited, facing worsening hardship and hunger due to government policies that are driving many into poverty.

The NLC’s statement highlights its increasing concern over the economic strain on Nigerians and reaffirms its commitment to holding both fuel marketers and the government accountable for the well-being of citizens.

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