The landing cost of Premium Motor Spirit (PMS), also known as petrol, has dropped to N981 per litre, as of September 2024, down from N1,130 in previous weeks.
This decrease is due to a fall in global crude oil prices, which have fluctuated between $70 and $75 per barrel. The landing cost of petrol is influenced by global oil prices and the exchange rate of the naira to the dollar.
Amid the drop in petrol landing costs, major oil marketers have begun importing petrol into Nigeria. Previously, the Nigerian National Petroleum Company (NNPC) was the sole importer, but with the Dangote Refinery now producing locally, more private marketers are getting involved.
The Dangote Refinery began selling petrol at about N898 per litre, although NNPC announced that petrol might be sold at prices exceeding N1,000 per litre in some northern parts of Nigeria. The prices differ across regions, ranging from N950 in Lagos to N1,019 in Borno.
Nigerians are hopeful that prices will fall further once naira crude sales begin on October 1, 2024.
(Punch)