New Pump Price Expected as Petrol Landing Cost Drops N70 Below Dangote Price
- It is expected that filling stations across the country will soon adjust their pump prices as the landing cost of imported petrol has dropped
- New data shows that the landing cost of petrol has decreased by N30, making it N70 cheaper than Dangote petrol, which is priced at N970 per litre
- Nigerians currently pay between N1,050 and N1,100 per litre for petrol, but an adjustment in prices may occur soon
The cost of landing Premium Motor Spirit (PMS), commonly known as petrol, has dropped by N36 to N900.28 per litre.
The cost is a 3.62% decline from the previous N936.75 per litre recorded last week.
Source: Getty Images
This is according to data from the Major Oil Marketers Association of Nigeria (MOMAN).
Petrol landing cost refers to the total cost of importing a litre of petrol to a specific location, including the fuel price, shipping costs, insurance, customs duties, and any other fees incurred during transportation.
Vanguard reports that as of May 2024, the landing cost for petrol was N1,026.71 per litre.
The price reduction is due to crude oil prices and foreign exchange rates.
New petrol cost
Punch reports that the landing cost dropped even lower to N890.43 per litre earlier in the week before increasing again.
The new landing price of petrol is currently cheaper than Dangote petrol, priced at N970 per litre.
Legit.ng earlier reported that refiners blamed the federal government for the high petrol prices despite the operations of the Dangote Refinery and the Port Harcourt Refining Company.
Importation of petrol to continue
In an earlier comment, members of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) noted that they would import petrol to sell at prices lower than those offered by the Dangote Refinery.
The marketers said they have signed agreements with international suppliers to import the product at lower costs.
According to them, the new petrol regime allows them to source products from cheaper suppliers.
Refiners want govt to stop giving import licence
In a related development, Legit.ng reported that the Crude Oil Refinery Owners Association of Nigeria (CORAN) has cautioned the Nigerian government against issuing licenses to importers.
They argued that foreign traders use local marketers to import off-spec petroleum products into the country.
The refiners believe Nigeria is in deep trouble as many international traders still hold licenses to import fuel.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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Source: Legit.ng
