A bulletin issued by the Major Energies Marketers Association of Nigeria on November 8, 2024, indicated that the projected price of Premium Motor Spirit (PMS), commonly referred to as petrol, decreased by 20.34% to N971.57 per litre in the last three months.
The Competency Centre daily energy bulletin showed that the decline in landing costs on Nigeria’s shores indicated an equal reduction in global market fluctuations and supply chain factors.
The decrease is expected to lead to a corresponding drop in PMS prices in the nation. Nevertheless, the retail cost of petrol in Nigeria rose by N443, increasing from N617 per litre on August 1, 2024, to N1,060 per litre as of November 8, 2024.
Data released by MEMAN revealed that 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. During this timeframe, petrol was sold at N617 per litre.
However, in November, petrol is currently sold at N1,060 at the Nigerian National Petroleum Company Limited(NNPCL) retail station and N1,180 at stations owned by independent marketers 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.
In September and October 2024, the petrol landing cost stood at N945.63 and N903.64 per litre, respectively.
MEMAN, which has consistently supported complete deregulation of the downstream sector, typically attributes fluctuations in petrol prices to factors like the exchange rate and inflation, among other causes.
The development comes as the Nigeria Labour Congress (NLC) has claimed that petroleum marketers are increasing the price of petrol at the pump, which they argue is much above the real market value. The NLC has accused petrol marketers of taking advantage of Nigerians and worsening the already intense suffering caused by the government’s stringent economic measures.
“The NEC-in-session noted with increasing dismay the shenanigans around the appropriate pricing of petrol (PMS) in Nigeria. It observed that there may be a gang up against Nigerians by fat cats in the industry as the current price of the product is significantly higher than the real market price.
“Padding of costs and abnormal margins seems to be the order of the day considering the revelations from the ongoing controversy between Marketers and Dangote group. It is entirely possible that Nigerian workers and masses are being ripped off by those who control the levers of Economic power in Nigeria, which explains why the domestic public refineries may not immediately be allowed to come on stream.
“NLC demands appropriate pricing of petrol and calls for the Public domestic refineries in PH, Warri and Kaduna to quickly come back on stream to break-up the monopolistic stranglehold the big players have on the industry,” the union said in a communique released following its National Executive Council meeting on Sunday, directing its members to embark on a nationwide strike beginning from December 1, 2024.
NLC argued that Nigerians are being exploited as citizens are experiencing increased hardship and hunger because of government policies that are driving many into poverty.