Data released by the Major Energies Marketers Association of Nigeria (MEMAN) shows that the landing cost of petrol has dropped to N981 per litre.....KINDLY READ THE FULL STORY HERE▶
The petrol landing cost was around N1,130 per litre in the previous weeks and dropped by over N140 as of September 25, 2024, caused by the decline in international crude oil prices.
Crude oil prices crash in the market
Crude prices and foreign exchange rates are significant factors determining the cost of refined petroleum products, including diesel, aviation, and kerosene.
According to reports, Brent traded above an average of $80 in August 2024 but fluctuated between $70 per barrel and $75 since September.
The commodity sold for $71.41 on Thursday, September 26, 2024, down from $73 per barrel since this month.
According to Statistica data, the average price of crude in August was about $80.36 per barrel.
Following the drop in landing costs and the increase in the commodity’s pump prices in Nigeria, major oil marketers have begun importing the product.
Oil marketers begin petrol imports
The Nigerian National Petroleum Company Limited (NNPC) was the sole importer of the product in Nigeria before the recent hike in pump prices and the beginning of petrol production by the Dangote Refinery.
Legit.ng reported that three oil marketers expect about 141 million litres of petrol.
The dealers stated that three vessels were transferring the products to Nigeria following the government’s deregulation of the downstream oil sector.
Punch reports that the marketers confirmed on Thursday, September 26, 2024, that some vessels had arrived in Nigeria.
Petro ex-depot prices across Nigeria
MEMAN disclosed that the product’s landing cost began to decline in mid-July and dropped to N950 per litre in early September.
It was observed that the crash came despite the rise of the US dollar against the naira. The landing cost was calculated using N1,667.22 per dollar.
MEMAN said that the average ex-depot price of petrol was between N865 and N1,200 in Lagos, between N980 and N1,400 per litre in Calabar, and N1,200 to N1,400 in Port Harcourt as of Wednesday, September 25, 2024.
The marketers stated that the landing cost of diesel is about N1,089 per litre, and aviation fuel costs N1,117.34.
Reports say the marketers said the ex-depot price of diesel was about N1,165 in Lagos and N1,200 in Calabar and Port Harcourt,
Marketers begin direct talks with Dangote Refinery
Legit earlier reported that independent petroleum marketers were starting direct negotiations with the Dangote Petroleum Refinery in Lagos to break NNPC’s monopoly in the petroleum sector, especially in distributing Dangote petrol.
The oil marketers expressed hope that they could lift petrol directly from the Dangote refinery as the product’s scarcity continues.
Checks revealed that many petrol stations in Abuja were still shut down due to scarcity three months after.