Nigeria's Petrol Landing Cost Declines in November, but Retail Prices Remain High

The landing price of Premium Motor Spirit (petrol) in Nigeria dropped to N971 per litre in November 2024, according to the latest data from the Major Energy Marketers Association.

This reflects a 20.23% reduction in the landing cost of imported petrol compared to the August 2024 rate of N1,219 per litre. The price decrease is attributed to changes in global crude oil prices and fluctuations in the Naira-to-Dollar exchange rate.

As of the close of business on Friday, the exchange rate stood at N1,678.87 per Dollar, and the price of Brent crude was $73.63 per barrel, down from $80.72 per barrel and N1,611 per Dollar in August 2024. Despite the reduction in landing costs, petrol is being sold at retail outlets and filling stations by the Nigerian National Petroleum Company Limited (NNPC) at prices ranging from N1,060 to N1,200 per litre.

It is worth noting that between August 2024 and November 11, 2024, the pump price of petrol increased from N617 per litre to approximately N1,060 per litre. In a recent update, Dangote Refinery stated that its ex-depot prices for petrol are N960 for ships and N990 for trucks.

Meanwhile, the Nigeria Labour Congress (NLC) released a statement on Sunday, asserting that the current petrol pump price in Nigeria is higher than its actual market value.