The Major Energies Marketers Association (MEMAN) reported a 20.34% decrease in the estimated landing cost of Premium Motor Spirit (PMS), also known as petrol, bringing it to ₦971.57 per liter as of November 8, 2024. Despite this significant reduction, the retail price of petrol has surged, now costing ₦1,060 per liter at Nigerian National Petroleum Company Limited (NNPC) outlets and reaching ₦1,180 at independent stations. This comes after a steady increase since August, when the price was ₦617 per liter.
Data from MEMAN indicated that in August, petrol was imported at ₦1,219 per liter, corresponding to a Brent crude benchmark of $80.72 per barrel and an exchange rate of ₦1,611 per dollar. As of November, with the Brent crude price down to $75.57 per barrel and the exchange rate slightly adjusted to ₦1,665.84 per dollar, the landing costs continued to drop, recording ₦945.63 in September and ₦903.64 in October. Despite these decreases, retail prices have not reflected the decline, raising questions over market fairness and pricing mechanisms.
The Nigeria Labour Congress (NLC) has openly criticized petrol marketers for allegedly inflating prices, describing it as an exploitation of Nigerians who are already struggling due to economic pressures. In a recent statement following its National Executive Council meeting, the NLC expressed concern over what it called “padding of costs and abnormal margins,” which it claims are being driven by powerful market players who maintain a monopolistic hold over Nigeria’s downstream sector.
The NLC’s statement added that the current petrol pricing mechanisms do not align with market realities, calling for an urgent overhaul. Specifically, the union has demanded the swift reopening of public refineries in Port Harcourt, Warri, and Kaduna to disrupt the monopolistic influence over fuel prices and reduce reliance on imports. The NLC has thus directed its members to embark on an indefinite strike starting December 1, 2024, urging the government to act against unfair pricing practices and prioritize affordable fuel access for citizens.
As Nigeria grapples with rising inflation and a challenging economic landscape, the public outcry for transparency and regulatory oversight in the petrol sector is intensifying, putting additional pressure on both the government and market players to address the situation before further hardships ensue.
