Nigeria's Petrol Landing Cost Drops Amid Rising Crude Prices

The landing cost of imported petrol in Nigeria has fallen by ₦9.07 per litre, now at ₦1,283.81, despite a slight increase in international crude oil prices, which rose from $108.80 to $108.90 per barrel. This information was reported in the energy bulletin of the Major Energies Marketers Association of Nigeria (MEMAN).

Although the decline in landing cost is noted, it has not resulted in lower retail prices, as motorists in Lagos and Abuja are paying between ₦1,370 and ₦1,429 per litre. The landing cost is ₦66.19 per litre below the ₦1,350 per litre gantry price set by Dangote Petroleum Refinery, representing about 4.9 percent of the refinery's price.

The difference between the estimated landing cost and retail prices reflects additional expenses incurred in the supply chain, including transportation, storage, and distribution costs. The figures indicate a complex relationship between import costs, locally refined products, and retail pricing.