MEMAN Announces Minor Drop in Petrol Landing Costs
The Major Energy Marketers Association of Nigeria (MEMAN) has reported a slight reduction in the landing cost of Premium Motor Spirit (PMS), commonly known as petrol, signaling some stability in the country’s downstream oil sector.
According to reports, the landing cost of petrol decreased marginally to ₦970 per litre in December 2024, down from ₦971 per litre in November. This drop coincides with a minor decline in crude oil prices, which fell from $74 per barrel to $73.77 per barrel within the span of a week.
In a daily bulletin shared with Vanguard, MEMAN attributed the adjustment in landing costs to a crude oil price of $73.91 per barrel (Brent) and an exchange rate of ₦1,533.57 per dollar.
MEMAN explained that international petroleum product pricing remains volatile, influenced by factors such as geopolitical tensions, developments in the Middle East, market dynamics in China, and the impact of the recent U.S. elections. Additionally, fluctuations in foreign exchange rates contribute to frequent shifts in landing costs.
Despite the changes in landing costs, petrol prices in Lagos have remained steady at ₦1,025 per litre.
Ehimen Joseph, Chairman of MEMAN’s Lagos State Chapter, emphasized that petrol pricing in the deregulated market is determined by market forces, which makes gradual price reductions possible over time.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), noted that immediate price reductions are unlikely due to existing stock levels. He explained that marketers must first sell their current stock before prices can adjust. Sustained price changes will depend on market dynamics and foreign exchange stability, with adjustments expected over the next month or two.
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