The Major Energy Marketers Association of Nigeria (MEMAN) has announced a significant drop in the landing cost of Premium Motor Spirit (PMS), commonly known as petrol, in September 2024. According to MEMAN’s latest Competency Centre Energy Bulletin, the landing cost of petrol has decreased from N1,130 per litre in July 2024 to N981.08 per litre in September, reflecting a reduction of N148.92 per litre.
Factors
Behind the Landing Cost Drop
The
drop in the landing cost of petrol is largely attributed to fluctuating crude
oil prices in the global market. In September 2024, crude oil prices ranged
between $70 and $75 per barrel, a decrease from the $80 per barrel seen in
August. This global price fluctuation directly impacted the cost of importing
petrol into Nigeria.
Petrol
Prices Still High Despite Landing Cost Reduction
Despite
the reduction in the landing cost, Nigerian consumers continue to pay between
N950 and N1,100 per litre for petrol, depending on their location. This price
range indicates that the decrease in landing costs has not yet translated into
significant relief for consumers at the pump.
NNPC
Announces Petrol Price Hike After Dangote Refinery Supply
Adding
to the fuel price debate, the Nigerian National Petroleum Company (NNPC)
recently announced a fresh hike in petrol prices following its procurement of
petrol from the Dangote Refinery. As of September 15, 2024, NNPC reported that
it purchased domestically-produced petrol from Dangote Refinery at N898 per
litre. However, there has been some disagreement over the exact pricing, with
the Dangote Group disputing the NNPC’s figures but failing to disclose the
actual cost of its products.
Growing
Concerns Over Petrol Prices in Nigeria
The
rising cost of petrol continues to be a major point of contention within
Nigeria’s oil and gas sector, as consumers struggle with escalating energy
costs. Although the landing cost has dropped, the continued price hikes at the
pump remain a concern for many Nigerians, who are already burdened by high
inflation and the rising cost of living.
House of
Representatives Pressures Dangote Refinery
In
response to the growing tension surrounding fuel prices, the Nigerian House of
Representatives has called on the Dangote Refinery to disclose the exact price
of its petrol products. Additionally, lawmakers are urging the refinery to sell
directly to petroleum marketers in an effort to increase transparency and
potentially drive down retail prices.
Dangote’s
Call for Subsidy Removal
In
a related development, Aliko Dangote, the President of Dangote Group, has
reiterated his call for the complete removal of petrol subsidies in Nigeria. In
a recent interview with Bloomberg Television, Dangote emphasized the need for
the Nigerian government to eliminate fuel subsidies, arguing that it would
promote a more sustainable economic environment and stabilize the fuel market
in the long term.
Conclusion
While the landing cost of petrol in Nigeria has seen a notable decline due to fluctuating global crude prices, the benefits have yet to fully reach Nigerian consumers, who continue to pay high prices for fuel. With ongoing discussions around fuel subsidies, domestic refining, and pricing transparency, the country’s oil and gas sector remains in a state of flux. Stakeholders, including the government, marketers, and refineries, will need to work together to ensure that the benefits of lower landing costs are passed on to consumers.
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