The Major Energies Marketers Association of Nigeria (MOMAN) has released data showing that the landing cost of Premium Motor Spirit (PMS), also referred to as gasoline, has decreased to N981 per litre.
Compared to the previous price of about N1,130 per litre that was reported in recent weeks, this represents a decrease of more than N140.
The recent decline in the price of crude oil globally is the reason for the decrease in the landing cost. The global oil standard, Brent crude, has been trading in the range of $70 to $75 per barrel as of September 2024. Brent was trading at $71.41 a barrel on Thursday, September 26, a decrease from $73.46 the day before.
Crude oil prices and foreign exchange rates are major factors influencing the cost of refined petroleum products in Nigeria, such as petrol, diesel, aviation fuel, and kerosene.
According to Statista, a global statistical agency, the average price of Brent crude in August 2024 was $80.36. The price drop has been related to lower oil demand from China and predictions of higher output from the Organization of Petroleum Exporting Countries (OPEC).
In Nigeria, petrol prices at the pump are still high despite the decrease in landing expenses. Major oil marketers have, however, started importing PMS again; formerly, the Nigerian National Petroleum Company Limited (NNPCL) handled this responsibility. In the near future, the Dangote Petroleum Refinery’s start of gasoline production and distribution is anticipated to have an impact on market dynamics.
This development offers some respite to the continuing discourse in Nigeria regarding fuel prices, since declining oil prices could indicate lower consumer costs in the upcoming months. However, the nation’s energy sector continues to face difficulties due to market volatility and volatile foreign exchange prices.
A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.
Nnamdi Okoli