Petrol Landing Cost Reduces as Naira Appreciates

 

The landing cost of petrol in Nigeria has dropped from ₦981 per litre on September 25, 2024, to ₦945.63 per litre as of September 27, 2024. This reduction is attributed to the appreciation of the naira against the US dollar, according to data released by the Major Oil Marketers Association of Nigeria (MEMAN).

MEMAN reported that the exchange rate improved, with the naira trading at ₦1,586.26 per dollar on September 27, compared to ₦1,667.22 on September 25. Additionally, Brent crude oil, the global benchmark, also saw a price decrease, falling from $73.67 per barrel to $72.45 per barrel, further contributing to the reduction in petrol's landing cost.

Alongside petrol, the landing cost of diesel decreased from ₦1,089 per litre to ₦1,068.04 per litre, and aviation fuel dropped from ₦1,117.34 per litre to ₦1,079.79 per litre.

Despite these fluctuations, petrol prices remain varied across the country. In northern Nigeria, the Nigerian National Petroleum Company (NNPC) announced that petrol could sell for as high as ₦1,019 per litre in states like Borno, and around ₦999.22 per litre in Abuja, Sokoto, and Kano. In southern regions, such as Lagos, prices were lower, with petrol sold at ₦950 per litre.

While some parts of the country have seen prices as high as ₦1,200 per litre, major marketers in Lagos have kept prices around ₦870 per litre.

During a recent media chat, NNPC’s Executive Vice President, Downstream, Dapo Segun, clarified that petrol pricing remains market-driven, despite agreements with Dangote Refinery. Segun highlighted that pricing negotiations between NNPC and Dangote officials took over a week to finalize, with both parties reaching an agreement based on competitive pricing.

As the sale of petrol from the Dangote Refinery continues, Nigerians are hopeful that prices will stabilize further, particularly with the start of naira-based crude oil sales on October 1, 2024.