Petrol landing cost reduces in Nigeria

Petrol landing cost reduces in Nigeria

The landing cost of imported petrol in Nigeria has reduced from N1,292.88 to N1,283.81 per litre.

According to the energy bulletin released by the Major Energies Marketers Association of Nigeria (MEMAN) on Wednesday, the reduction comes as Brent crude oil rose slightly to $108.90 per barrel from $108.80 per barrel, reflecting a small increase in the international oil market.

According to the report, the current landing cost of imported petrol is N66.19 per litre lower than the N1,350 per litre gantry price set by Dangote Refinery.

The landing cost is also below the prices at which depot owners sell petrol to retailers. The report showed that imported petrol’s landing cost was between N64.19 and N74.19 per litre lower than the ex-depot prices of N1,348 to N1,358 per litre.

Despite the decline in the cost of bringing petrol into the country, motorists continue to pay high prices at filling stations in some parts of Nigeria.

In Lagos and Abuja, petrol was reportedly sold at prices ranging from N1,370 to N1,429 per litre.

The difference between the landing cost and the pump price reflects other expenses incurred along the supply chain.

These include transportation, storage, distribution and the operating costs of filling stations, as well as the profit margins of businesses involved in the process.