The Major Energy Marketers Association of Nigeria (MEMAN) has reported a marginal decrease in the landing cost of Premium Motor Spirit (PMS), signaling some stability in the downstream petroleum sector.
According to MEMAN, the landing cost of PMS fell slightly to ₦970 per litre in December 2024, compared to ₦971 per litre in November. This adjustment aligns with a drop in crude oil prices, which declined from $74 per barrel last week to $73.77 per barrel as of Wednesday.
EDITOR’S PICKS
- Sanwo-Olu Donates N75M to Support Legionnaires and Families of Fallen Heroes
- Current Cement Prices: Dangote, BUA, Others This Festive Season
- Fatal Crash on Lagos Third Mainland Bridge; Four Rescued, Two Injured in Fadeyi Collision
EKO HOT BLOG reports that the association, in its daily energy bulletin, linked the current landing cost to an exchange rate of ₦1,533.57/$ and a crude oil price of $73.91 per barrel (Brent). MEMAN further noted that international petroleum pricing remains volatile due to geopolitical and economic factors, such as tensions in the Middle East, market shifts in China, and the impact of recent U.S. election outcomes.
“The foreign exchange rate is also experiencing volatility,” MEMAN stated. “Landing costs, influenced by these variables, may change multiple times within a single day.”
Despite the slight drop in landing costs, the retail price of petrol in Lagos has remained steady at ₦1,025 per litre.
Commenting on the development, Ehimen Joseph, Chairman of MEMAN’s Lagos State Chapter, emphasized that the pricing of petrol under a deregulated market regime is dictated by market dynamics. He expressed optimism that further price reductions could occur.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), added that immediate price reductions are unlikely as marketers still hold existing stocks purchased at higher costs. “A reduction is possible over time, but it won’t happen spontaneously. The market operates with a lag of about one to two months, pending the depletion of current stocks and sustainable foreign exchange rates,” Yusuf explained.
The stability in landing costs and crude oil prices is viewed as a positive sign for the sector, with expectations of gradual adjustments in retail pricing driven by market forces.
FURTHER READING
- Bromate In Bread Linked To Cancer Risk For Nigerians – What You Should Know
- One Killed, Four Injured in Bus-Truck Collision on Lagos Third Mainland Bridge
- Sanwo-Olu Donates N75M to Support Legionnaires and Families of Fallen Heroes
Here’s the video of the week:
Advertise or Publish a Story on EkoHot Blog:
Kindly contact us at [email protected]. Breaking stories should be sent to the above email and substantiated with pictorial evidence.
Citizen journalists will receive a token as data incentive.
Call or Whatsapp: 0803 561 7233, 0703 414 5611
