The Major Energy Marketers Association of Nigeria (MEMAN) has reported a slight decrease in the landing cost of Premium Motor Spirit (PMS) to N970 per litre in December 2024, down from N971 in November. This drop coincides with a decline in crude oil prices, which fell to $73.77 per barrel from $74 last week, reflecting relative stability in the downstream sector.
In its daily energy bulletin, MEMAN highlighted that international petroleum pricing remains volatile due to geopolitical and economic factors, including developments in the Middle East, China’s market conditions, and the aftermath of the recent U.S. elections. It also noted that fluctuating foreign exchange rates significantly influence landing costs, which may vary multiple times within a single day.
Despite the reduced landing cost, the retail price of petrol in Lagos remains steady at N1,025 per litre. The Chairman of MEMAN’s Lagos State Chapter, Ehimen Joseph, attributed this to the deregulated market regime, where prices are dictated by market forces. He added that while a price drop is possible, it depends on market conditions and supply dynamics.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), explained that any reduction in petrol prices would not be immediate due to marketers holding large stockpiles. He projected that price adjustments could take one to two months as stock levels deplete and foreign exchange rates stabilize, signaling a gradual shift in market trends.
