Petrol Price Drop in Nigeria: What’s Behind the Fall and What’s Next?
Nigeria’s energy landscape is in the spotlight again as the Major Energies Marketers Association of Nigeria, MEMAN, announced a significant drop in the landing cost of Premium Motor Spirit (PMS). The price has fallen to N981.08 per litre in September 2024, down from N1,130 in July, marking a decrease of N148.92 per litre.
According to MEMAN’s Competency Centre Energy Bulletin data, the fluctuation of crude oil prices on the global market has contributed to the price drop. Crude oil prices have hovered around $70 per barrel and $75 in September 2024, a significant drop from the $80 traded in August.
However, this news may not bring relief to Nigerians who still face varying prices for petrol, ranging from N950 to N1,100 depending on their location. The price hike is partly attributed to the recent lifting of the product from the Dangote Refinery refinery on September 15, 2024.
The Nigerian National Petroleum Company (NNPC) bought the domestic petrol produced by Dangote Refinery at N898 per litre, but Dangote Group disagreed with the price and failed to reveal the actual cost of their product. This has led to a heated debate in the oil and gas sector, with Nigerians lamenting high energy costs.
The House of Representatives has asked Dangote Refinery to reveal its petrol price and sell directly to Petroleum Marketers. Meanwhile, Aliko Dangote, President of Dangote Group, has called on the Nigerian government to completely suspend petrol subsidy.
As the debate rages on, one thing is clear: the drop in landing cost is a significant development in Nigeria’s energy sector. With crude oil prices stabilizing and NNPC’s efforts to improve the supply chain, consumers may see some relief at the pump. However, the fate of the country’s energy costs remains uncertain, and only time will tell what the future holds.
