The cost of landing Premium Motor Spirit (petrol) in Nigeria has decreased by 20.34%, dropping to N971.57 per litre over the past three months. Despite this reduction, the retail price of petrol has surged by 71.79%, rising from N617 per litre in August 2024 to N1,060 per litre by November 2024 at Nigerian National Petroleum Company (NNPC) retail stations. Independent marketers are reportedly selling petrol at even higher prices, around N1,180 per litre. This increase comes despite a lower landing cost, which oil marketers imported at N1,219 per litre in August when crude oil was priced at $80.72 per barrel, compared to a Brent crude benchmark of $75.57 in November.
The disparity between falling landing costs and rising retail prices has been linked to factors such as deregulation, exchange rate fluctuations, and inflation. Experts have suggested that the recent reduction in landing costs could eventually lead to a decrease in pump prices, though the market has not yet reflected this trend. The Nigeria Labour Congress (NLC) has criticized fuel marketers, accusing them of inflating prices and exploiting Nigerians, exacerbating the economic challenges faced by citizens due to government policies.
In its communique following a National Executive Council meeting, the NLC highlighted the growing economic strain on Nigerians, emphasizing the need for accountability from both fuel marketers and the government. The NLC’s concerns focus on the rising cost of living and its impact on the country’s most vulnerable populations, who continue to suffer amid inflation and economic instability.
