The cost of landing Premium Motor Spirit (PMS), commonly known as petrol, in Nigeria has declined to N900.28 per litre, representing a N36 reduction from the previous cost of N936.75 per litre. This marks a 3.62% decrease, according to data released by the Major Energy Marketers Association of Nigeria (MOMAN).
Earlier this week, the landing cost had dropped even further to N890.43, signaling fluctuating costs influenced by global market conditions and supply chain factors. Between December 10 and December 13, oil marketers imported approximately 90,308 metric tonnes of PMS, equivalent to about 121.1 million litres, based on a conversion rate of 1,341 litres per metric tonne.
Despite this decline in import costs, the retail price of petrol in Nigeria remains high, at N1,060 per litre. Crude oil prices and foreign exchange rates continue to drive the cost of refined petroleum products, such as petrol, diesel, and kerosene.
Domestically refined petrol has been reported to cost more than imported products. For instance, petrol from the Dangote Petroleum Refinery is priced at N970 per litre, while fuel from the Port Harcourt Refining Company costs N1,030 per litre. This suggests that imported PMS is relatively cheaper, even when regulatory fees are excluded.
The data from MOMAN also revealed that the daily spot price of imported petrol rose slightly from N890 to N900.28 on Thursday, while the 30-day average cost dropped to N945.23. At the same time, Brent crude oil was benchmarked at $73.52 per barrel, up from $72.06 the previous day.
Taking advantage of the price reduction, several marketers imported large volumes of petrol to meet domestic demand. Over the past three days, 121.1 million litres were brought into the country using four vessels.
Key Shipments Include:
- Stellar: Delivered 15,000 metric tonnes (21.12 million litres) at Warri Port on December 10.
- Kriti Ruby: Imported 37,308 metric tonnes (50.03 million litres) to Apapa Port on December 12.
- St Lady Meenah: Delivered 23,000 metric tonnes (30.84 million litres) to Rivers Port on December 12.
- Virgo 1: Expected to deliver 15,000 metric tonnes (20.12 million litres) to Calabar Port today.
The recent decrease in landing costs is a significant development for Nigeria’s fuel supply chain. However, the gap between landing costs and retail prices raises concerns about the impact of domestic refining and global oil price dynamics on local consumers.
