For the third consecutive day, the landing cost of petrol in Nigeria has remained steady at approximately N976 per litre, according to the latest data from the Major Energy Marketers Association of Nigeria (MEMAN). The figure, calculated using an exchange rate of N672.28 per US dollar, reflects a spot landing cost of N952.69 per litre and a 30-day average landing cost of N976.73 per litre.
The consistent landing cost of petrol comes as a result of various factors, including finance charges applied at an annual rate of 32% over a 30-day period, freight charges over 10 days, and fees from the Nigerian Ports Authority (NPA) for services such as mooring and towage.
Stability Across Other Fuels
The price stability is not limited to petrol. Other key fuels, including diesel (Automotive Gas Oil), have maintained a steady landing cost of N1,082 per litre, while aviation fuel (Aviation Turbine Kerosene) remains priced at N1,137 per litre. This trend points to a relatively calm period in Nigeria’s typically volatile fuel import market.
Context: Volatile Exchange Rates Impact Fuel Costs
While the steady pricing offers some relief to consumers and businesses, it is important to note that the fuel market remains sensitive to fluctuations in the exchange rate and international oil prices. The Nigerian fuel import market has been under significant pressure in recent months, with exchange rate volatility and rising global oil prices leading to cost increases. However, the current stability could signal a temporary easing of these pressures.
Looking Ahead: Future Trends
Fuel marketers and industry stakeholders will be closely monitoring the exchange rate, global oil prices, and domestic fuel demand, as these factors could influence future price movements. If the naira continues to stabilize and international oil prices remain steady, the landing cost of fuels could remain relatively unchanged in the near term. However, any sharp fluctuations in these variables could lead to price adjustments.