Petrol landing cost drops amid naira appreciation

cover, Financial Markets

The landing cost of petrol has dropped from the N981/litre recorded on September 25, 2024, to N945.63/litre as of September 27.

This is according to data released by the Major Energies Marketers Association of Nigeria on Monday.

The drop in the landing cost of petrol happened following the appreciation of the naira against the United States dollar.

In the MEMAN report, a dollar was said to have been exchanged for N1,586.26 on September 27 while it was N1,667.22 on September 25.

Also, Brent, the global benchmark for crude, dropped from the $73.67/barrel recorded in the last report released by MEMAN to $72.45 in the latest report on Monday.

The fall must have also contributed to the reduction in the landing cost of imported petrol.

The average ex-depot prices of PMS saw a marginal reduction in Lagos, Calabar, and Port Harcourt.

The major marketers disclosed that the landing cost of diesel, which was N1,089/litre previously, dropped to N1,068.04/litre, while that aviation fuel also fell from N1,117.34/litre to N1,079.79/litre.

It was observed that the difference between imported petrol and that of Dangote might be less than N46 if calculated by the N898/litre which the Nigerian National Petroleum Company claimed it bought the Dangote fuel.

Recall that NNPC hiked the pump prices of petrol the same day the Dangote refinery unveiled its locally-produced petrol.

From around N600, the price of petrol jumped to N855 and N900/litre. With the commencement of petrol sales by the Dangote refinery, NNPC also announced new prices.

NNPC said it would sell the petrol lifted from the Dangote refinery at a price above N1,000/litre in the far north.

The NNPC spokesperson, Olufemi Soneye, explained that the price may go for as high as N1,019/litre in places like Borno State, and N999.22 in Abuja, Sokoto, Kano, and others.

In Oyo, Rivers, and other areas in the South, it would be N960/litre. The lowest price, according to an infographic released by the NNPC, was N950 in Lagos and its environs.