The cost of landing Premium Motor Spirit (PMS), commonly known as petrol, in Nigeria has dropped by 20.34 percent over the past three months, settling at N971.57 per litre. This reduction, which reflects the expenses tied to importing and distributing the product, indicates some relief in global market trends and supply dynamics. However, while the landing cost has fallen, the retail price has surged significantly—from N617 per litre on August 1, 2024, to N1,060 per litre by November 8, a 71.79 percent increase.
Data from the Major Energies Marketers Association reveals that in August, petrol was imported at N1,219 per litre with Brent crude oil priced at $80.72 per barrel and an exchange rate of N1,611 per dollar. During this time, petrol was sold at N617 per litre. By November, with the landing cost at N971.57 and Brent crude dropping to $75.57 per barrel, petrol now sells at N1,060 at Nigerian National Petroleum Company Limited (NNPCL) outlets and up to N1,180 at independent stations.
This contradiction between falling landing costs and rising retail prices has drawn criticism, with the Nigeria Labour Congress (NLC) accusing fuel marketers of inflating prices. The NLC, in a communiqué following its National Executive Council meeting, criticized both government policies and fuel marketers for imposing economic hardship on Nigerians, asserting that the current pump price is artificially inflated beyond the market value.
Experts suggest that deregulation, currency fluctuations, inflation, and economic instability are driving up prices despite a decrease in import costs. The NLC, however, has called for accountability, stressing that these inflated prices are worsening living conditions, pushing citizens into poverty, and straining household incomes.
The NLC’s stance underscores a deepening frustration over fuel costs and a call for immediate intervention to address the broader economic implications on Nigerian citizens.
