The cost of landing petrol in Nigeria has seen a reduction as the naira strengthens against the US dollar, impacting fuel prices nationwide.
The petrol landing cost drops from N981/litre on September 25, 2024, to N945.63/litre as of September 27, 2024. This decline is linked to the strengthening of the naira, which appreciated against the US dollar during this period. According to data from the Major Energy Marketers Association of Nigeria (MEMAN), the naira traded at N1,586.26 per dollar on September 27, compared to N1,667.22 two days earlier.
In addition to the naira’s appreciation, a decrease in the price of Brent crude oil, the global benchmark, contributed to the drop in landing costs. The cost of Brent crude fell from $73.67/barrel to $72.45, reflecting the international market’s fluctuation and further easing the pressure on petrol prices.
The petrol landing cost drops also impacted other fuel types. Diesel prices dropped from N1,089/litre to N1,068.04/litre, while aviation fuel prices saw a reduction from N1,117.34/litre to N1,079.79/litre. These changes signal potential relief in fuel prices, although much depends on the ongoing market dynamics and the government’s policies.
Despite the decrease in landing costs, petrol prices remain high in various parts of Nigeria. The Nigerian National Petroleum Company (NNPC) set petrol prices from the Dangote refinery at over N1,000/litre in northern regions, with Borno State seeing prices as high as N1,019/litre. In contrast, Lagos experienced a lower price of around N950/litre. While petrol landing costs drop, prices for consumers vary, reflecting local market conditions and supply dynamics.
The NNPC also highlighted that negotiations with the Dangote refinery were aimed at securing favorable pricing for petrol. However, the market-driven nature of pricing has kept prices high in many areas. Nevertheless, Nigerians remain hopeful that as more locally refined petrol becomes available, prices will stabilize or even decline.
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