The cost of bringing petrol, officially known as Premium Motor Spirit (PMS), into Nigeria has dropped significantly. As of Thursday, the estimated cost per litre fell by N36, bringing it down to N900.28. This information comes from a report by DANDALI which cites data from the Major Energies Marketers Association of Nigeria.
Just last week, the cost to import petrol was about N936.75 per litre, meaning there has been a decrease of about 3.62%. Earlier this week, the price had already fallen to N890.43. Recent reports show that oil marketers imported a total of 90,308 metric tonnes of petrol between December 10 and December 13, 2024.
To put this in perspective, one metric tonne of petrol is roughly equivalent to 1,341 litres. This means that over the three-day period, marketers brought in approximately 121.1 million litres of petrol.
The drop in the landing cost of petrol suggests some relief from the fluctuations in the global market and issues related to the supply chain. However, despite this decrease, the price that consumers pay for petrol in Nigeria remains high at N1,060 per litre.
The prices of crude oil and the exchange rate of the dollar are key factors influencing the costs of petrol and other refined oil products like diesel and kerosene. Earlier this week, industry players noted that the costs associated with locally refined petrol and the price of importing crude oil are significant contributors to the high prices of fuel in Nigeria compared to imported petrol.
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For instance, petrol produced at the Dangote Petroleum Refinery is priced at N970 per litre, while petrol from the Port Harcourt Refining Company is priced at N1,030 per litre. This indicates that imported petrol, when excluding certain regulatory fees, is currently cheaper than petrol refined within Nigeria.
Recent data shows that the daily spot price for imported petrol was N900.28, which is a slight increase from the N890 recorded the previous day. The 30-day average price also fell to N945.23 on Thursday, down from N946.38 the day before and N958.89 last week.
In terms of crude oil prices, Brent crude was priced at $73.52 per barrel, up from $72.06 the previous day, with the exchange rate standing at N1,533 per dollar. In Lagos, the price range for petrol at depots remains between N970 and N1,050.
Taking advantage of the lower prices, oil marketers have imported a total of 121.1 million litres of petrol to ensure there is enough supply for the domestic market. According to documents from the Nigerian Port Authority, these shipments arrived at various ports, including Apapa Port in Lagos, Warri Ports, Onne Port in Rivers State, and Calabar Port in Cross Rivers State.
For example, a major marketer named AYM Shafa imported 15,000 metric tonnes, which is about 21.12 million litres of petrol, on December 10. This shipment arrived at Warri Port. Another ship, Kriti Ruby, delivered 37,308 metric tonnes (around 50.03 million litres) at Apapa Port on December 12. Similarly, a vessel named St Lady Meenah brought in 23,000 metric tonnes (approximately 30.84 million litres) at Rivers Port on the same day. Furthermore, another shipment named Virgo 1 is expected to arrive at Calabar Port today, carrying 15,000 metric tonnes (around 20.12 million litres).
This ongoing importation of petrol is somewhat surprising because some marketers had previously announced plans to stop importing petrol and instead focus on supplying domestically refined fuel.
