Victor EzejaThe pump price of Premium Motor Spirit (PMS) also known as petrol may likely drop following a reduction in the estimated cost of landing product in recent times.
According to a publication by the Major Energies Marketers Association of Nigeria (MEMAN) Competency Centre, titled Daily Energy Bulletin, PMS landing cost is now ₦976.73 per litre reflecting a 19.87 per cent drop over the past three months.
Join our WhatsApp ChannelIn August, oil marketers imported petrol at a price of ₦1,219 a litre, based on the benchmark Brent crude oil price of $80.72 per barrel and an exchange rate of ₦1,611 per dollar, according to data published by the Major Energies Marketers Association in its competency centre daily energy report. During this time, the price of a litre of gasoline was ₦617.
However, in November, the product is currently selling for ₦1,060 at the Nigerian National Petroleum Company Limited retail station and ₦1,180 at stations owned by independent marketers, with an estimated landing cost of ₦976.73, a benchmark Brent crude price of $75.57 per barrel, and an exchange rate of ₦1,665.84 per dollar.
The landing cost is determined by factors such as the global oil market price, exchange rate, shipping and storage among others, including charges at the port of entry.
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This decline in the landing cost is expected to lead to a corresponding reduction in pump prices at filling stations across the country. However, the retail price of PMS has continued to surge in the same period. This development has been attributed to various factors, including ongoing petroleum market deregulation, exchange rate volatility, and soaring inflation among other economic issues.
The MEMAN Competency Centre publication also revealed that the landing cost of Automotive Gas Oil (AGO), also known as diesel stood at ₦1,082/litre, while that of Aviation Turbine Kerosene (ATK), known as aviation fuel stood at ₦1,135/litre.
The report estimated that ex-depot price for PMS in Lagos ranges from ₦995.00/litre to ₦1,120.00/L; AGO, ₦910.00/L to ₦1,150.00/L; ATK, ₦1,000.00/L to ₦1,400.00/L; LPG, ₦1,005/KG to ₦1,125/KG.
It also estimated the price of Compressed Natural Gas (CNG) to be within the range of ₦230.00/scm to ₦450.00/scm.
Nigerians have continued to grapple with soaring energy costs given the implications on inflation, transportation food, and other economic activities.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
