Lagos, Nigeria – November 15, 2024 – The landing cost of petrol in Nigeria has experienced a slight increase, rising to approximately N977 per litre, according to newly released data from the Major Energy Marketers Association of Nigeria (MEMAN). This marks a small uptick from the previous figure of N976.73 per litre recorded over the past 30 days.
Key Factors Behind the Increase
The increase in landing cost is primarily attributed to changes in the exchange rate, which currently stands at N1,672.28 to the dollar. The spot landing cost has also shifted to N938.41 per litre, reflecting minor fluctuations due to ongoing adjustments in exchange rates and supply conditions.
MEMAN’s breakdown of the landing cost includes several components, such as:
- Finance charges: Applied at an annual rate of 32% over a 30-day period.
- Freight expenses: Incurred over a 10-day shipping period.
- Nigerian Ports Authority (NPA) fees: For services such as mooring and towage at the ports.
Other Fuels Maintain Stability
In contrast to petrol, the prices of diesel (Automotive Gas Oil) and aviation fuel (Aviation Turbine Kerosene) have remained relatively stable. Diesel is currently priced at N1,086 per litre, while aviation fuel costs N1,141 per litre. These prices have shown little variation, suggesting that the volatility in the fuel import market is concentrated around petrol.
Implications for Fuel Import Market
This slight uptick in the petrol landing cost reflects the ongoing adjustments in Nigeria’s fuel import market, driven by factors like exchange rate movements and changing supply conditions. While the increase is marginal, it highlights the delicate balance in fuel pricing, especially given the volatility of the exchange rate and the country’s reliance on imports to meet domestic fuel demand.
With diesel and aviation fuel prices remaining largely unchanged, the overall fuel pricing environment in Nigeria has seen only minor shifts, providing some stability for consumers and businesses reliant on these fuels.