- MEMAN's latest energy bulletin showed the landing cost of imported petrol fell by about N9 per litre to N1,283.81
- Motorists in Lagos and Abuja continued to pay between N1,370 and N1,429 per litre at filling stations despite the drop
- The federal government's proposed 30-day petrol discount at NNPC outlets had not yet taken effect as of the time of reporting
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The cost of importing petrol into Nigeria fell slightly to N1,283.81 per litre, down from N1,292.88 per litre, according to the Major Energies Marketers Association of Nigeria (MEMAN).
MEMAN disclosed the figure in its latest energy bulletin released on Wednesday, showing a reduction of N9.07 per litre. The drop came even as Brent crude oil prices edged up marginally, rising to $108.90 per barrel from $108.80 per barrel.
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The new landing cost sits at N66.19, or about 4.90%, below the N1,350 per litre gantry price set by the Dangote Refinery.
It also falls between N64.19 and N74.19 per litre below the ex-depot prices of N1,348 to N1,358 quoted by depot owners.
Pump prices yet to reflect the drop
Vanguard reports that the decline in import costs has not reached petrol stations. In Lagos and Abuja, motorists were still paying between N1,370 and N1,429 per litre, with no sign of any reduction at the pump.
The gap between what it costs to bring petrol into the country and what consumers pay at the station reflects expenses that accumulate along the supply chain, covering transportation, storage, distribution and the margins that retailers apply before fuel reaches motorists.
Landing cost is an estimate of the expense involved in bringing imported petrol into Nigeria, including import-related charges. It is not the same as the retail price and does not account for costs incurred after the fuel clears the port.
FG discount initiative still pending
The fall in landing costs comes as a proposed government relief measure remains unimplemented. Finance Minister Taiwo Oyedele announced on October 8 that petrol would be sold at N1,350 per litre at Nigerian National Petroleum Company (NNPC) Limited filling stations under a planned 30-day discount scheme.
The initiative was designed to ease the financial burden on Nigerians who have been contending with elevated fuel costs.
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However, NNPC Limited outlets had not yet started selling petrol at the discounted price as of the time of reporting.
Whether any future decline in import costs filters through to retail prices will depend on how supply conditions evolve, the cost of moving fuel across the country and pricing decisions at each level of the downstream petroleum market.
NNPC filling stations new petrol pump price
Earlier, Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) has pushed petrol prices up to N1,405 per litre at its filling stations, lifting the pump price by N35 from the previous rate of N1,370 per litre.
Filling station attendants were reportedly informed of the change over the weekend, with the new price taking effect the following day.
The variation across locations shows that depot prices have not aligned uniformly with the government's benchmark.
Source: Legit.ng