Petrol Landing Cost Drops to ₦970, But Pump Prices Remain High
In a recent development that could impact Nigeria’s energy sector, the landing cost of petrol has dropped to ₦970 per litre, thanks to falling crude oil prices on the global market, now hovering around $75 per barrel. However, despite this reduction, Nigerians are still buying petrol at the pump for around ₦1,010 to ₦1,020 per litre.
The landing cost of petrol includes expenses such as the purchase price, freight, and other importation costs. While this decrease in cost is a step in the right direction, the average Nigerian has yet to feel any relief in their wallet due to other economic pressures.
One of the major factors keeping pump prices high is the current exchange rate, which sits at a staggering ₦1,000 to the dollar. Industry experts say this exchange rate has a much greater impact on the final cost of petrol than fluctuations in crude oil prices.
The Major Oil Marketers Association of Nigeria (MOMAN) has voiced concerns about this issue, highlighting the difficulty marketers face due to limited access to foreign exchange at reasonable rates. They’re pushing for a more liberalized foreign exchange market, which they believe could allow for cheaper imports and, ultimately, lower petrol prices for Nigerians.
As we head into the festive season, the demand for petrol is expected to surge. Stakeholders in the sector are urging the government to stabilize the exchange rate and provide consistent access to forex for marketers. Without these measures, the reduced landing cost might not translate into affordable petrol for the average consumer.
For now, the ₦970 per litre landing cost is a positive sign, but addressing Nigeria’s forex challenges remains key to ensuring that these reductions actually benefit the man on the street.
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