Landing cost of petrol drops to N900/litre

The cost of landing Premium Motor Spirit (PMS), commonly referred to as petrol, in Nigeria has decreased by N36, now standing at N900.28 per litre as of Thursday.

This represents a 3.62% drop from the previous week’s figure of N936.75 per litre, according to data released by the Major Oil Marketers Association of Nigeria (MOMAN).

Earlier this week, the landing cost had fallen to N890.43 per litre, marking a continuing trend in declining import costs. Fresh reports also indicate that oil marketers imported a total of 90,308 metric tonnes of fuel between Tuesday, December 10, and Friday, December 13, 2024.

Using a conversion rate of 1,341 litres per metric tonne, this translates to about 121.1 million litres of petrol imported over three days. The reduction in landing cost reflects adjustments in global market conditions and supply chain dynamics. Despite this, the retail price of petrol in Nigeria remains high, at N1,060 per litre.

Key determinants of the cost of refined petroleum products, such as crude oil prices and foreign exchange rates, continue to impact the market.

Earlier in the week, industry stakeholders highlighted that dollar-based pricing for locally refined PMS and high crude import costs are significant contributors to the elevated prices of domestic products compared to imported ones.

For instance, petrol from the Dangote Petroleum Refinery was priced at N970/litre on Thursday, while refined products from the Port Harcourt Refining Company cost around N1,030/litre. This suggests that imported fuel, excluding regulatory charges, remains more cost-effective than domestically refined alternatives.

An analysis of MOMAN’s data shows that the estimated import parity cost averaged N945.23 per litre over the past 30 days, compared to N958.89 the previous week. Meanwhile, Brent crude oil traded at $73.52 per barrel on Thursday, up from $72.06 the previous day, with the exchange rate at N1,533 per dollar.

Documents obtained from the Nigerian Ports Authority revealed that a total of 121.1 million litres of PMS were delivered to four ports across Nigeria this week: Apapa Port in Lagos, Warri Port, Onne Port in Rivers State, and Calabar Port in Cross River State.

One of the key marketers, AYM Shafa, imported 15,000 metric tonnes (21.12 million litres) on Tuesday via the vessel Stellar, which berthed at Warri Port. Another shipment, carried by the vessel Kriti Ruby, delivered 37,308 metric tonnes (50.03 million litres) to Apapa Port on Thursday. The Rivers Port received 23,000 metric tonnes (30.84 million litres) on Thursday via St Lady Meenah, while Virgo 1 is scheduled to deliver 15,000 metric tonnes (20.12 million litres) to Calabar Port today.

Punch