The cost of importing Premium Motor Spirit (petrol) to Nigeria has significantly decreased to N900.28 per litre, down by N36 from the previous week. This drop in landing cost is attributed to a reduction in global market fluctuations and supply chain factors. Despite this relief, the retail price of petrol in Nigeria remains at N1,060 per litre.
Factors such as crude oil prices and foreign exchange rates play a crucial role in determining the cost of refined petroleum products. Marketers have imported approximately 121.1 million litres of petrol within three days, indicating continued demand despite challenges in the local refining sector.
Imported fuel is currently cheaper than domestically refined products, with prices varying between N970 to N1,050 per litre. The recent data also shows a decrease in the daily spot price of import parity into tank costs. Oil marketers have taken advantage of the reduced prices to import large quantities of petrol to meet domestic demand.
Multiple vessels carrying petrol have berthed at various ports in Nigeria, facilitating the supply chain. Despite some groups of marketers announcing plans to halt petrol imports and focus on domestic supply, the importation of petrol continues to meet the country’s demand for fuel.