The cost of importing Premium Motor Spirit (PMS), or petrol, to Nigeria has decreased by 20.34%, dropping to N971.57 per litre over the past three months, according to the latest report from the Major Energy Marketers Association of Nigeria (MEMAN).
This reduction, as outlined in MEMAN’s November 8, 2024, energy bulletin, reflects a global dip in market prices and improved supply chain conditions. Despite this, Nigerians are facing higher petrol prices at the pump, with retail rates climbing by N443, from N617 per litre in August to N1,060 per litre in November.
The data highlights a stark contrast: while the landing cost of petrol fell from N1,219 per litre in August to N971.57 in November, local retail prices have surged. In September and October, the landing cost was N945.63 and N903.64 per litre, respectively, indicating a consistent downward trend in importation costs.
MEMAN attributes price fluctuations to factors such as the exchange rate and inflation, stressing that full deregulation of the sector is necessary to stabilize prices. However, the Nigeria Labour Congress (NLC) has accused petrol marketers of inflating prices beyond actual market value, claiming the price hikes are exacerbating economic hardship for Nigerians already struggling with government policies.
The widening gap between importation costs and retail prices continues to raise concerns about market practices, as Nigerians face steep petrol prices despite global cost reductions.
