Nigerians could soon see a reduction in petrol pump prices as the landing cost of Premium Motor Spirit (PMS), commonly referred to as petrol, has experienced a slight decrease. According to the Major Energy Marketers Association of Nigeria (MEMAN), the landing cost of PMS dropped marginally to ₦970 per litre in December 2024, compared to ₦971 per litre in November.
The decrease in landing cost is attributed to a dip in crude oil prices, which fell to $74 per barrel last week. MEMAN further explained that the latest figures are based on an exchange rate of ₦1,533.57/$ and a Brent crude oil price of $73.91 per barrel.
Ehimen Joseph, Chairman of the Lagos Chapter of MEMAN, noted that under Nigeria’s deregulated market regime, petrol prices are influenced by market forces. He hinted that this decline in landing costs might lead to a reduction in pump prices, though adjustments will depend on market dynamics.
“The price of petrol is determined by market forces under a deregulated market regime,” Joseph stated. “A drop in price is possible.”
Despite the landing cost reduction, the retail price of petrol in Lagos remains unchanged at ₦1,025 per litre. However, market watchers are optimistic that a downward adjustment could soon be on the horizon.
The volatility in international petroleum pricing has been shaped by a range of geopolitical and economic factors, including tensions in the Middle East, shifting demand dynamics in China, and the aftermath of the recent U.S. elections. These factors continue to influence the global energy market, affecting both crude oil prices and the cost of refined petroleum products.
While the drop in landing costs offers a glimmer of hope for consumers, industry stakeholders caution that any price adjustments will be contingent on prevailing market conditions and exchange rate stability.