“No More N1,120 Per Litre:” Fuel Prices to Change as Petrol Landing Costs Crash Further
- The landing cost of petrol and other petroleum products has crashed further following exchange rate stability
- Data from major marketers, including the NNPC, shows that landing cost crashed to N935.94 per litre from N977
- The development means that filling stations nationwide are expected to sell petrol for less than N1,100 per litre
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Filling stations nationwide are expected to adjust pump prices again following the crash in fuel landing costs.
The landing cost of freighting fuel to Nigeria fell to N935.94 per litre, and aviation fuel crashed to N1,117.48 per litre.
Source: UGC
Prices of petrol, diesel and other petroleum products crash
This is according to data by the Major Energy Marketers Association of Nigeria (MEMAN).
The MEMAN report, published on Tuesday, November 19, 2024, also indicated that the landing cost of diesel dropped to N1,071.8 per litre, calculated at the exchange rate of N1,659.37 per dollar.
The report disclosed that the landing cost comprised multiple factors, such as finance charges calculated at an annual rate of 32% over 30 days, freight costs over 10 days, and the Nigerian Ports Authority (NPA) fees covering mooring and towage.
Ex-depot prices crash in Lagos, other states
MEMAN gave the ex-depot price for Lagos at N1,029 per litre for petrol, N1,120 per litre for diesel, N1,040 per litre for aviation fuel and N1,125 per litre for LPG.
MEMAN added that the compressed natural gas (CNG) cost was between N230 per scm and N450.
Legit.ng reported that as of Friday, November 15, 2024, the landing cost was about N1,975 per litre.
The adjustment was calculated with an exchange rate of N1,685.93 per dollar, reflecting a decrease from the previous price of N977.45 per litre.
Strong competition crashes prices
The spot landing cost also crashed slightly to N938 per litre, showing modest improvements caused by exchange rate stability.
Nigeria has been experiencing a reduction in petrol prices following massive importation by the Nigerian National Petroleum Company Limited and oil marketers.
Prices have crashed from N1,200 early in November to about N1,080 per litre in many filling stations.
Analysts say the development is due to intense competition in the downstream petroleum sector between the Dangote Refinery and oil marketers in Nigeria.
Dangote Refinery, marketers sign deal
Legit.ng previously reported that the Dangote Refinery had reached a landmark agreement with the Independent Petroleum Marketers Association of Nigeria (IPMAN) to supply 60 million litres of petrol weekly, averaging 240 million litres monthly.
The arrangement will begin in the coming weeks and will give IPMAN about 240 million litres of petrol monthly, boosting the association’s distribution capacity.
IPMAN’s national publicity secretary, Chinedu Ukadike, said the deal would allow its members to lift petrol directly from the Dangote Refinery without involving intermediaries.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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