Petrol Landing Cost Falls by N69.45 Per Litre as NNPC, MRS Cut Pump Prices
By Aboki Forex —
Nigeria's petrol landing cost fell by N69.45 per litre in three days, according to the latest figures from the Major Energies Marketers Association of Nigeria (MEMAN), as movements in the international oil market continued to influence the cost of imported fuel.
The lower spot landing cost fell from N1,384.82 per litre on September 25 to N1,278.37 per litre on September 28. The decline came as global oil markets remained volatile amid developments involving the United States and Iran. Expectations of possible peace talks have eased some of the geopolitical premium in crude prices, though uncertainty around supply remains. Some Lagos depot prices still stayed above the MEMAN benchmark as of September 29.
MEMAN Data Shows Mixed Movement in Global Benchmarks
MEMAN's seven-day average Brent price edged up from $103.19 per barrel on September 25 to $103.25 on September 28. The seven-day average WTI price declined from $93.25 to $92.79 per barrel, while Bonny Light fell from $120.92 to $120.40 per barrel.
Petrol landing costs are influenced by several factors beyond crude prices, including international PMS benchmark prices, exchange rates, freight and other costs associated with importing petroleum products.
MEMAN's seven-day average PMS import-parity cost fell by N17.58 per litre, from N1,383.92 on September 25 to N1,366.34 on September 28. The sharper movement was recorded in the lower spot assessment, which fell by N69.44 per litre during the period.
The September 28 import-parity calculation was based on a 38,000-metric-tonne PMS cargo delivered into tank at ASPM and NPSC Jetty in Apapa. The calculation included the CBN-weighted average NAFEM exchange rate, finance charges, freight, towage, berthing and mooring, cargo dues, contingency, fire coverage and agency fees. It also included VAT and charges payable to NPA, NIMASA and NMDPRA.
NNPC, MRS Cut Pump Prices
The lower landing-cost benchmark comes as some major players in the downstream market have reduced petrol prices. NNPCL lowered prices at some filling stations in Lagos to N1,370 per litre from N1,385, while selected outlets in Abuja reduced prices to N1,405 from N1,430.
The adjustments followed Dangote Petroleum Refinery's N25 cut in its petrol gantry price to N1,325 per litre from N1,350. MRS filling stations in Abuja also reduced their pump price to N1,370 per litre from N1,395.
Earlier Landing Cost Estimate
In an earlier update, petrol and diesel prices were below landing costs in several major markets, despite a surge in global crude oil prices. The increase pushed Nigeria's estimated landing cost for Premium Motor Spirit (PMS) to N1,420 per litre and Automotive Gas Oil (AGO) to N1,894 per litre.
Despite that, Dangote Petroleum Refinery is selling PMS at N1,350 per litre at the gantry, which is N70 below the landing cost, while its AGO gantry price of N1,850 per litre sits N44 below the diesel landing cost.
The drop in landing cost and the pump price cuts by NNPC and MRS offer some relief for Nigerian motorists and businesses that rely on petrol for transport and production. Whether the trend holds will depend on how crude prices and the naira exchange rate move in the coming weeks.