The landing cost of petrol in Nigeria has decreased by 20.34% over the past three months, according to a report by The Punch. However, this decline has not translated into lower prices at the pump; in fact, retail prices have increased significantly, rising from N617 per litre to N1,060 per litre within the same period.

The Punch attributes this disparity between landing and retail costs to several factors: the ongoing deregulation of the fuel market, currency fluctuations, rising inflation, and broader economic challenges facing Nigeria.

In August, oil marketers were importing petrol at N1,219 per litre, based on a Brent crude oil benchmark price of $80.72 per barrel and an exchange rate of N1,611 per dollar, as indicated in data from the Major Oil Marketers Association of Nigeria (MOMAN). At that time, the retail price of petrol was N617 per litre.

Currently, however, despite a reduced estimated landing cost of N971.57—calculated with a Brent crude benchmark of $75.57 per barrel and an exchange rate of N1,665.84 per dollar—retail prices have continued to rise. Petrol now costs N1,060 per litre at Nigerian National Petroleum Company Limited (NNPCL) stations and up to N1,180 per litre at independently owned stations.

The data shows a steady decrease in the landing cost since August, when it stood at N1,219 per litre. By September, this had fallen to N945.63 per litre, with further declines through October, before a slight increase was noted in November.

These trends underscore the complexities in Nigeria’s fuel market, where external factors such as currency volatility and deregulation continue to drive retail prices upwards, despite a drop in the landing cost of imported fuel.