Fuel Prices May Exceed N1,000 as Landing Cost Surges

The landing cost of imported premium motor spirit (PMS) in Nigeria surged to N885 per litre on Wednesday, up from N797 per litre recorded last week. The Major Energy Marketers Association of Nigeria (MEMAN) disclosed this increase in its daily energy bulletin, highlighting an 88 naira rise within a week.

With this development, fuel prices at filling stations across the country could climb to around N1,000 per litre, up from the current range of N940 to N970 per litre. The rising landing cost is putting additional pressure on consumers, already grappling with economic challenges.

Comparatively, the landing cost of imported petrol remains lower than the ex-depot price of Dangote Refinery’s petrol, which stands at N815 per litre. Currently, Dangote’s petrol is sold at MRS filling stations in Lagos and Abuja at prices ranging between N860 and N880 per litre. The refinery’s recent decision to suspend sales of petroleum products in naira is expected to influence a fresh pricing template, potentially pushing prices even higher.

Amid growing concerns over fuel price fluctuations, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged Nigerians to avoid panic buying. The association called on the government to maintain its Naira-for-Crude deal with Dangote Refinery while ensuring fair competition in the downstream sector. PETROAN also dismissed speculations that Dangote’s suspension of naira sales was a reason for panic buying, reiterating its opposition to the sale of petroleum products in foreign currencies within Nigeria.

With uncertainty looming in the fuel market, Nigerians brace for further adjustments in pump prices in the coming days.