Petrol Landing Cost Drops to N970, Crude Oil Prices Fall to $73.77

 

The Major Energy Marketers Association of Nigeria (MEMAN) has announced a slight decrease in the landing cost of Premium Motor Spirit (PMS), commonly known as petrol. In December 2024, the cost fell to N970 per litre, down from N971 per litre in November.

In addition, crude oil prices dropped to $73.77 per barrel yesterday, compared to $74 per barrel the previous week.

MEMAN explained that the new landing cost is based on a foreign exchange rate of N1,533.57/$ and a crude oil price of $73.91 per barrel (Brent). The association also highlighted the ongoing volatility in international petroleum pricing due to geopolitical and economic factors, including developments in the Middle East, market trends in China, and the impact of recent U.S. elections.

Furthermore, fluctuations in the foreign exchange rate are also affecting the landing cost, which may change several times within a single day.

In Lagos, the retail price of petrol remains steady at N1,025 per litre.

MEMAN’s Lagos chapter Chairman, Ehimen Joseph, explained that petrol prices are influenced by market forces in a deregulated market, and a drop in price is possible.

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), added that petrol prices cannot fall suddenly, as marketers hold large stocks. He noted that price reductions could happen over time based on market forces and foreign exchange volatility. However, he emphasized that a decrease in petrol prices would not be immediate and would likely occur after a month or two, once stocks are depleted and exchange rate stability is achieved.