The estimated landing cost of Premium Motor Spirit (PMS), commonly known as petrol, in Nigeria has seen a decline of ₦36, dropping to ₦900.28 per litre as of Thursday.
This marks a 3.62% decrease from the previous week’s landing cost of ₦936.75 per litre, according to data released by the Major Energy Marketers Association of Nigeria (MEMAN). Interestingly, earlier this week, costs had even dipped further, reaching ₦890.43 per litre.
This reduction in landing cost reflects some relief from fluctuations in global oil prices and improvements in supply chain dynamics.
Despite this decrease, the retail price of petrol in Nigeria remains significantly higher at ₦1,060 per litre, which has raised concerns over the continued high prices for consumers at the pump.
While the decrease in landing costs indicates a shift in the dynamics of petrol pricing, it also highlights the difference in the cost structure of imported petrol versus domestically refined products. Notably, imported petrol is still relatively cheaper than domestically refined petrol when regulatory fees are excluded. This disparity continues to be a point of contention as Nigerians face high fuel prices despite local refining efforts.
