Landing Cost of Petrol Drops to N970 Per Litre in December — MEMAN

The Major Energy Marketers Association of Nigeria (MEMAN) has announced a marginal reduction in the landing cost of Premium Motor Spirit (PMS), commonly known as petrol. According to MEMAN, the landing cost decreased to N970 per litre in December 2024, compared to N971 per litre in November 2024. This development reflects some stability in the downstream sector.

The decrease coincides with a drop in global crude oil prices, which fell to $73.77 per barrel as of yesterday, down from $74 per barrel recorded last week. MEMAN’s daily energy bulletin, obtained by Vanguard, confirmed the updated landing cost, which was calculated based on a crude oil price of $73.91 per barrel (Brent) and an exchange rate of N1,533.57 to the dollar.

Despite this marginal decline, MEMAN noted that international petroleum pricing remains highly volatile due to several geopolitical and economic factors. These include tensions in the Middle East, market fluctuations in China, and reactions to the recent U.S. elections. The association further highlighted the impact of foreign exchange rate instability, cautioning that landing costs could fluctuate multiple times daily.

Currently, the retail price of petrol remains steady at N1,025 per litre in Lagos. Ehimen Joseph, Chairman of MEMAN’s Lagos State Chapter, explained that petrol prices are determined by market forces under the deregulated regime, and further reductions are possible as conditions evolve.

Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), also commented on the price dynamics, noting that immediate reductions in retail prices are unlikely due to existing stock held by marketers. He emphasized that price adjustments are subject to market forces and foreign exchange fluctuations, with changes likely occurring over a month or two as stock levels deplete and exchange rates stabilize.