Petrol Landing Cost Drops By 20.34% As NLC Accuses Marketers Of Price Inflation

Petrol Landing Cost Drops By 20.34% As NLC Accuses Marketers Of Price Inflation

The estimated cost of landing Premium Motor Spirit (PMS), commonly known as petrol, has dropped by 20.34% to N971.57 per litre over the past three months.

This was disclosed by the Major Energy Marketers Association of Nigeria (MEMAN) in its latest Daily Energy Bulletin for November 8, 2024.

The reduction in landing costs reflects global market fluctuations and supply chain adjustments.

Despite this decline, petrol prices in Nigeria have risen, with the retail price increasing by N443 from N617 per litre on August 1, 2024, to N1,060 per litre as of November 8, 2024.

According to MEMAN data, in August 2024, oil marketers imported petrol at N1,219 per litre based on a Brent crude oil price of $80.72 per barrel and an exchange rate of N1,611 per dollar.

During this period, petrol sold at N617 per litre.

However, in November, with an estimated landing cost of N971.57, a Brent crude price of $75.57 per barrel, and an exchange rate of N1,665.84 per dollar, the retail price has risen to N1,060 at the Nigerian National Petroleum Company Limited (NNPCL) stations and N1,180 at independent marketers’ stations.

The data also showed that landing costs were N945.63 in September 2024 and N903.64 in October 2024.

MEMAN, which has consistently called for full deregulation of Nigeria’s downstream sector, typically cites factors like exchange rates and inflation as key influences on petrol price fluctuations.

This development comes amid accusations from the Nigeria Labour Congress (NLC), which has accused petroleum marketers of inflating petrol prices well above the actual market value.

The NLC claims that marketers are exploiting Nigerians, worsening the economic hardships caused by government policies.

“The NEC-in-session noted with increasing dismay the shenanigans around the

appropriate pricing of petrol (PMS) in Nigeria. It observed that there may be a gang up against Nigerians by fat cats in the industry as the current price of the product is significantly higher than the real market price.

“Padding of costs and abnormal margins seems to be the order of the day considering the revelations from the ongoing controversy between Marketers and Dangote group. It is entirely possible that Nigerian workers and masses are being ripped off by those who control the levers of Economic power in Nigeria which explains why the domestic public refineries may not immediately be allowed to come on stream.

“NLC demands appropriate pricing of petrol and calls for the Public domestic

refineries in PH, Warri and Kaduna to quickly come back on stream to break-up

the monopolistic stranglehold the big players have on the industry,” the union said in a communique released following its National Executive Council meeting on Sunday, directing its members to embark on a nationwide strike beginning from December 1, 2024.

The NLC argued that Nigerians are being exploited, with citizens facing increased suffering and hunger as government policies drive many into deep poverty.