Petrol cost drops to N970 per litre, says Marketers

NIGERIA — The Major Energy Marketers Association of Nigeria, MEMAN, has said that the landing cost of Premium Motor Spirit, PMS, also known as petrol declined marginally to N970 in December 2024, from N971 per litre in November 2024.

This comes against the backdrop of a similar drop in the crude oil price to $73.77 per barrel, yesterday, from $74 per barrel last week.

A report in its daily energy bulletin, MEMAN, said that the latest landing cost was based on N1,533.57/$ and $73.91 per barrel of crude oil (Brent).

It also stated that, “International petroleum product pricing is experiencing significant volatility due to geopolitical and economic factors, including events in the Middle East, China market dynamics, and the market of the recent USA elections outcome.

“The foreign exchange rate is also experiencing volatility. Landing cost, being fundamentally influenced by these elements, is likely to change several times intra-day.”

However, the retail price of petrol remains unchanged at N1,025 per litre in Lagos.

The Chairman of the Lagos State Chapter of the association, Ehimen Joseph, said: “The price of petrol is determined by market forces under a deregulated market regime. A drop in price is possible.”

In the same vein, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, had also said, “The price of petrol cannot just drop spontaneously, as marketers have large stocks. Until it is finished, there will be no reduction.

“But the fall in price is possible over time based on market forces and foreign exchange volatility. In other words, fuel price reduction cannot be spontaneous. The market will definitely have a lag, that will be sustained within a month or two pending marketer’s depleted stocks and sustainable foreign exchange.”