By Abubakar Yunusa
The estimated cost of importing Premium Motor Spirit (PMS), commonly known as petrol, dropped by 20.34% over the past three months, according to the Major Energy Marketers Association of Nigeria (MEMAN).
Despite this decline, retail petrol prices have surged by N443 per litre, marking a rise of more than 70% since August 2024.
MEMAN’s latest report, issued on November 8, shows that while the landing cost of petrol fell to N971.57 per litre in November from N1,219 in August, the average retail price at filling stations has increased.
As of November 8, petrol sells for N1,060 per litre at Nigerian National Petroleum Company (NNPC) retail stations, and N1,180 at independent marketers’ outlets.
The report attributes the drop in landing costs to a reduction in global crude oil prices and shifts in supply chain dynamics. In August, oil marketers imported petrol at N1,219 per litre, based on a Brent crude oil price of $80.72 per barrel and an exchange rate of N1,611 per dollar. By November, the Brent crude price had decreased to $75.57 per barrel, and the exchange rate had adjusted to N1,665.84 per dollar, with the estimated landing cost for November standing at N971.57 per litre.
However, despite the drop in costs, the retail price of petrol has continued to rise. The N1,060 per litre price at NNPC stations represents a 71.8% increase from August, when petrol sold at N617 per litre.
MEMAN has long advocated for full deregulation of Nigeria’s downstream oil sector, with the association pointing to factors such as inflation and the exchange rate as reasons for the price fluctuations. However, the Nigeria Labour Congress (NLC) has condemned the rising petrol prices, accusing petroleum marketers of inflating prices beyond market levels.
In a statement issued after a National Executive Council meeting on Sunday, the NLC expressed concerns over what it described as “shenanigans” around the pricing of petrol in the country.
The union alleged that marketers were exploiting Nigerians, pointing to ongoing disputes between marketers and the Dangote Group as evidence of “cost padding” and abnormal profit margins. The NLC also called for the swift reopening of Nigeria’s domestic refineries in Port Harcourt, Warri, and Kaduna, which it claims would help break the industry’s monopoly and reduce petrol prices.
“The NLC demands appropriate pricing of petrol and calls for the public domestic refineries to come back on stream to break the monopolistic stranglehold the big players have on the industry,” the union said in a communique. The NLC also announced plans for a nationwide strike beginning on December 1, 2024, to protest against the rising cost of living.
As Nigeria grapples with persistent economic challenges, including high inflation and unemployment, the price of petrol has become a key flashpoint, with both consumers and labor unions voicing growing dissatisfaction with the policies governing the sector.