₦airaland Forum

The estimated cost of landing Premium Motor Spirit, commonly known as petrol, on Nigeria’s shores has seen a considerable reduction of 20.34 per cent, dropping to N971.57 per litre over the past three months.

This decline in landing cost, which reflects the price of importing and distributing the product, indicates some relief in terms of global market fluctuations and supply chain factors.

However, despite this reduction, the retail price of petrol in Nigeria has sharply increased by N443, or 71.79 per cent, from N617 per litre on August 1, 2024, to N1,060 per litre by November 8, 2024.

According to data released by the Major Energies Marketers Association, in its competency centre daily energy bulletin, oil marketers imported petrol at N1,219 per litre at a Brent crude oil price benchmark of $80.72 per barrel and at an exchange rate of N1,611 per dollar in August. Petrol sold at N617 per litre during this period.

But in November, with an estimated landing cost of N971.57, Brent crude price benchmark of $75.57 per barrel and an exchange rate of N1,665.84 per dollar, the product currently sells at N1,060 at the Nigerian National Petroleum Company Limited retail station and N1,180 at stations owned by independent marketers.

The document also showed that the landing cost stood at N945.63 in September 2024 and N903.64 per litre in October 2024. This increase, despite falling landing costs, can be attributed to factors such as the ongoing deregulation of the fuel market, fluctuations in the exchange rate, rising inflation, and the broader economic challenges facing the country.

However, experts say they expect the reduction would lead to a corresponding drop in the retail price of petrol.

On Sunday, the Nigeria Labour Congress accused fuel marketers of inflating petrol prices, claiming the pump price is significantly higher than the actual market value.

The NLC in a communique released following its National Executive Council meeting, contended that Nigerians are being exploited, with citizens enduring heightened suffering and hunger due to government policies that are pushing many into destitution.The organization’s call underscores its growing concerns over the economic strain on Nigerians and its commitment to holding both fuel marketers and the government accountable for citizens’ welfare.

Source: https://punchng.com/Petrol-Landing-Cost-Drops-To-N971/litre-Report

What I am only interested in learning is whether Nigeria has infact ended the fuel subsidy regime. If so, when. Also why is the senate supposedly investigating the $3.2 Billion that NNPCL claims FG owes?

All this report about landing costs, demurrage and what not are all economic jargons.If the price of crude oil goes up at the international market,Nigerian government will increase the price of fuel per litre.When the price of crude oil comes down they will not reduce the price of a litre of petrol.Nigeria is now refining petroleum products and the price is higher than imported ones.Which kind economy sense is that?

Tinubu, how much has been saved from the subsidy removal, and where is the money?

Petroleum pricing under this regime, the more you look the less you see.

mrvitalis:
It is mathematically impossible for landing cost of petrol to be ₦950 let's be realistic

I honestly don't understand why this Yoruba APC government lie over irrelevant things

The lowest anyone can get petrol of low quality like the ones we use here is around 70 cents per litres

So when at the ₦1655 exchange rate it's ₦1158 plus say ₦30 shipping fee ₦1188 is the minimum you can get petrol into nigeria

If Nigerian marketers can import petrol at ₦950 None absolutely none of them would sale in Nigeria when their is Ghana, Togo, Benin Cameroon and the rest ready to pay ₦1350 per litres

I don't get why APC government can't come out openly and say yes we pay subsidies and end all this rigmarole they are doing... It makes no sense

Your calculations are off. Matrix sells at 1050. Not from NNPCL or Dangote Refinery and without subsidy.

Pickmycall:
All this report about landing costs, demurrage and what not are all economic jargons.If the price of crude oil goes up at the international market,Nigerian government will increase the price of fuel per litre.When the price of crude oil comes down they will not reduce the price of a litre of petrol.Nigeria is now refining petroleum products and the price is higher than imported ones. Which kind economy sense is that?

But this is not the same with other countries that refined their own crude.

If not for corruption, why should a country who extract it's crude and refine it be selling on the same price with what international market is selling..... Except when they're exporting the goods.

How I wish the fight between Dangote and the NNPC/Marketers will snowball into full time war where they'll reveal their unholy alliances that has kept increasing the prices of petroleum products in Nigeria.

Dangote, with about 5 items that are not paid for in the pricing template due to local sourcing and distribution still compete pricing with imported products.

I will only believe when it effects the price at the filling stations.
We produce Crude yet import pms.

Btw when is Port Harcourt and order refineries beginning operation.

Worldwide e don go

Good morning

I like the fact that the deregulation is working. I bought 1k per liter yesterday from NIPCO as against 1025 from NNPCL as at Saturday. I believe with time, it will come down to 500.

May this (Petrol Landing Cost Drops To ₦‎971/Litre – Report favor me and my family

I don't think Nigerians care so much about this news, all they want is reduced prices at the pumps

mrvitalis:
It is mathematically impossible for landing cost of petrol to be ₦950 let's be realistic

I honestly don't understand why this Yoruba APC government lie over irrelevant things

The lowest anyone can get petrol of low quality like the ones we use here is around 70 cents per litres

So when at the ₦1655 exchange rate it's ₦1158 plus say ₦30 shipping fee ₦1188 is the minimum you can get petrol into nigeria

If Nigerian marketers can import petrol at ₦950 None absolutely none of them would sale in Nigeria when their is Ghana, Togo, Benin Cameroon and the rest ready to pay ₦1350 per litres

I don't get why APC government can't come out openly and say yes we pay subsidies and end all this rigmarole they are doing... It makes no sense

You did not factor in impure products

It's widely known that importers of every commodities in Nigeria usually requested for sub standard version

From Transsion Phones, to accidented vehicles and drugs..

My own point is, as an oil producer, must we be buying at the international rates...

Allowing foreign market to dictate how much we are going to be buying our freely God given resources is the height of insensitivity and wickedness on the part of the Government

Pickmycall:
All this report about landing costs, demurrage and what not are all economic jargons.If the price of crude oil goes up at the international market,Nigerian government will increase the price of fuel per litre.When the price of crude oil comes down they will not reduce the price of a litre of petrol.Nigeria is now refining petroleum products and the price is higher than imported ones.Which kind economy sense is that?

Nigeria isn't refining petroleum products, Dangote is. And he's out to make profit thus pegging the price of his products higher than independent marketers.

Uselesss people

Ok nice

mrvitalis:
It is mathematically impossible for landing cost of petrol to be ₦950 let's be realistic

I honestly don't understand why this Yoruba APC government lie over irrelevant things

The lowest anyone can get petrol of low quality like the ones we use here is around 70 cents per litres

So when at the ₦1655 exchange rate it's ₦1158 plus say ₦30 shipping fee ₦1188 is the minimum you can get petrol into nigeria

If Nigerian marketers can import petrol at ₦950 None absolutely none of them would sale in Nigeria when their is Ghana, Togo, Benin Cameroon and the rest ready to pay ₦1350 per litres

I don't get why APC government can't come out openly and say yes we pay subsidies and end all this rigmarole they are doing... It makes no sense

That 70 cents per liter is the retail price for the masses. Meaning the fuel would have passed through the refinery operators, and marketers, before reaching the retailers who would would sell to you guys.

If you're buying as an importer in millions of metric tonns, it would be more cheaper. Cos you'll be buying directly from the refinery, so you're boycotting the marketers and the retailers.

So it is mathematically possible for the landing cost to be N971.

JASONjnr:
But this is not the same with other countries that refined their own crude.

If not for corruption, why should a country who extract it's crude and refine it be selling on the same price with what international market is selling..... Except when they're exporting the goods.

That's how funny the country and all those who think they are smart, intelligent and knowledgeable who support these useless talks about allowing an investor to sell something done in the country based on international market prices!!!!!

Meanwhile this sets of ignoramus and nonsensical nonentities will never agree let the so called FG who claim the same market forces and backed international market prices pay also an international marked up living wage of her civil servants because it's only when it gets to that point, many will join the Keke napep that leads to high inflation and all that stupidity that comes from their lips.

Pickmycall:
All this report about landing costs, demurrage and what not are all economic jargons.If the price of crude oil goes up at the international market,Nigerian government will increase the price of fuel per litre.When the price of crude oil comes down they will not reduce the price of a litre of petrol.Nigeria is now refining petroleum products and the price is higher than imported ones.Which kind economy sense is that?

Stop listening to propaganda.....who told you the refined fuel in Nigeria isn't cheaper than imported one,this is only a vile attempt by the people who have been benefitting from fuel imports and subsidy.

You read in the article that landing cost was now N971,then calculate depot charges, transportation,taxes etc,there is no way it can sell for less than 1,100 and no one really knows the quality of the petrol they are bringing in.

It's simple all these marketers who want to do oil business in Nigeria, should go into refining

Bobloco:
Tinubu, how much has been saved from the subsidy removal, and where is the money?

According to the minister of finance,the naira for crude deal for local refining and non importation of petrol will bring about 700b monthly in savings for FG.....that's really huge if I must say but the problem is our debt servicing obligations.....it's just too high!! Past govts have really put us in a debt mess and it's affecting everything.

Pickmycall:
All this report about landing costs, demurrage and what not are all economic jargons.If the price of crude oil goes up at the international market,Nigerian government will increase the price of fuel per litre.When the price of crude oil comes down they will not reduce the price of a litre of petrol.Nigeria is now refining petroleum products and the price is higher than imported ones.Which kind economy sense is that?

It takes two months for price decrease to reflect at the pump. It takes a week for price increase


In the energy economics world, this phenomenon is known as “rockets and feathers,” where it is commonly observed that prices at the pump shoot up with oil prices like rocket but fall like a feather back to the ground after oil prices drop.

mrvitalis:
It is mathematically impossible for landing cost of petrol to be ₦950 let's be realistic

I honestly don't understand why this Yoruba APC government lie over irrelevant things

The lowest anyone can get petrol of low quality like the ones we use here is around 70 cents per litres

So when at the ₦1655 exchange rate it's ₦1158 plus say ₦30 shipping fee ₦1188 is the minimum you can get petrol into nigeria

If Nigerian marketers can import petrol at ₦950 None absolutely none of them would sale in Nigeria when their is Ghana, Togo, Benin Cameroon and the rest ready to pay ₦1350 per litres

I don't get why APC government can't come out openly and say yes we pay subsidies and end all this rigmarole they are doing... It makes no sense

You are either a bot programmed to attack the govt at every turn or you are just trying to be downright mischievous......where in the post did the govt make the announcement on landing cost at 971.....it's the marketers themselves who are inferring and trying to make a case on why they should be allowed to import and trying to force govt to support them and which they are saying no way!! If you want to import you are free but with your own money and at your own risk.....no right thinking business man would be ready to go that route.

JASONjnr:
But this is not the same with other countries that refined their own crude.

If not for corruption, why should a country who extract it's crude and refine it be selling on the same price with what international market is selling..... Except when they're exporting the goods.

Mention such countries!!

Pickmycall:
All this report about landing costs, demurrage and what not are all economic jargons.If the price of crude oil goes up at the international market,Nigerian government will increase the price of fuel per litre.When the price of crude oil comes down they will not reduce the price of a litre of petrol.Nigeria is now refining petroleum products and the price is higher than imported ones.Which kind economy sense is that?

Why must fuel (Crude) be sold at international Price to the Nigerian market in the first place??

RealLordZeus:
You did not factor in impure products

It's widely known that importers of every commodities in Nigeria usually requested for sub standard version

From Transsion Phones, to accidented vehicles and drugs..

My own point is, as an oil producer, must we be buying at the international rates...

Allowing foreign market to dictate how much we are going to be buying our freely God given resources is the height of insensitivity and wickedness on the part of the Government

Venezuela did this which lead to catastrophic economic collapse. Our terrain is very easy for smuggler's

Lithiumite:
According to the minister of finance,the naira for crude deal for local refining and non importation of petrol will bring about 700b monthly in savings for FG.....that's really huge if I must say but the problem is our debt servicing obligations.....it's just too high!! Past govts have really put us in a debt mess and it's affecting everything.

Is Tinubu government not engaging in mindless borrowings despite not paying any subsidy?

dalitigator:
I like the fact that the deregulation is working. I bought 1k per liter yesterday from NIPCO as against 1025 from NNPCL as at Saturday. I believe with time, it will come down to 500.

Yes,your comments makes sense.
If this govt have been serious - by ensuring that at least 2- Refineries are working, NIGERIANS will not be complaining,
- plus Dangote own Refineries,then almost,the Fuel ⛽ Prices will be just above N500.per a litre.
•Why are we still talking of Landing Cost Now, because those Marketers are not ready to adjust to buy from Dangote,as they find it convenient to Import Fue- where a lot of Manipulation of Import licence and Naira Value are done,rather that Purchase from Local Producers like Dangote- and they love Importations-by given so much excuses,e.g Dangote is trying to monopolise,etc.
•The issue that NIGERIANS are confronting is CORRUPTION in all angles because our Leaders are putting their Interest above the Masses,since they also Own directly and Indirectly,certain parts locally and internationaly.e.g the Malta Ownership have not been resolved,nor has NNPC did anything better than when this govt came in- No-Fuel,No-Refineries,No Lights 🚨,No-Food available,or at high Prices,etc.
So,if Dangote has not started own Refinery,we are back to the same trajectory!