Korede Abdullah in Lagos
The Major Energy Marketers Association of Nigeria (MEMAN) has announced a marginal decline in the landing cost of Premium Motor Spirit (PMS), also known as petrol, to N970 per litre in December 2024.
This decrease follows a drop in crude oil prices to $73.77 per barrel.
According to MEMAN’s daily energy bulletin, the latest landing cost is based on an exchange rate of N1,533.57/$ and $73.91 per barrel of crude oil (Brent).
However, the association cautioned that international petroleum product pricing is experiencing significant volatility due to geopolitical and economic factors.
“The foreign exchange rate is also experiencing volatility. Landing cost, being fundamentally influenced by these elements, is likely to change several times intra-day,” MEMAN stated.
Despite the decline in landing cost, the retail price of petrol remains unchanged at N1,025 per litre in Lagos.
Ehimen Joseph, Chairman of the Lagos State Chapter of MEMAN, noted, “The price of petrol is determined by market forces under a deregulated market regime. A drop in price is possible.”
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), added, “The price of petrol cannot just drop spontaneously, as marketers have large stocks. Until it is finished, there will be no reduction.”
It will be recalled that Nigerian National Petroleum Company (NNPC) Limited had earlier announced a reduction in the price of Premium Motor Spirit (PMS), commonly known as petrol, at its retail outlets nationwide.
As of Saturday morning, Africa Health Report (AHR), gathered, the price of petrol at NNPC outlets in Abuja dropped from ₦1,060 per litre to ₦1,040 per litre, representing a ₦20 per litre decrease.
The adjustment is expected to provide slight relief to consumers grappling with rising fuel costs.
