The cost of landing Premium Motor Spirit (PMS) in Nigeria fell to N971 per litre in November 2024, marking a 20.23% reduction from N1,219 per litre recorded in August. This drop, revealed by the Major Energies Marketers Association, comes despite high fuel prices at Nigerian retail outlets, with pump rates currently ranging between N1,060 and N1,200 per litre.

Fluctuations in the naira-to-dollar exchange rate and a decline in crude oil prices are driving factors behind the reduced landing costs. The naira exchange rate as of November stood at N1,678.87 per dollar, while Brent crude traded at $73.63 per barrel, a decrease from August’s $80.72 per barrel at an exchange rate of N1,611 per dollar. However, consumers are yet to see any relief at the pumps, with the price of petrol jumping from N617 per litre in August to over N1,060 per litre as of mid-November.

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Even as landing costs drop, Nigeria’s largest refinery, the Dangote Refinery, announced ex-depot prices of N960 and N990 per litre for ships and trucks, raising questions about the pricing disparity.

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The Nigeria Labour Congress (NLC) voiced concerns over the high pump prices, calling for a revision to align with the reduced market value. In a communiqué issued on Sunday, the NLC argued that Nigerian consumers are paying inflated prices, despite the lower landing costs, and urged the government to intervene and provide more transparent pricing structures.