Petrol Landing Cost in Nigeria Drops, But Pump Price Rises
Written by Olakunle Oke on November 11, 2024
The landing cost of petrol in Nigeria has recently experienced a decline, reaching a new level of N97.1 per liter. This reduction in import costs is a positive development for the country’s fuel market.
However, despite the lower landing cost, the retail price of petrol at gas stations has continued to increase. This discrepancy between the import cost and the pump price has raised concerns among consumers and industry experts.
Several factors contribute to this price disparity:
- Deregulation of the Fuel Market: The Nigerian government’s decision to deregulate the fuel market has allowed for more market-based pricing, which can lead to fluctuations in pump prices.
- Exchange Rate Fluctuations: Changes in the exchange rate between the naira and the dollar can impact the cost of importing fuel, ultimately affecting the pump price.
- Inflation and Economic Challenges: Nigeria’s ongoing economic challenges, including high inflation rates, can contribute to increased fuel prices.
The Nigeria Labour Congress (NLC) has accused gas station owners of exploiting the situation by artificially inflating prices. The union has called for transparency and accountability in the fuel distribution and pricing process.
As the Nigerian government and industry stakeholders work to address these issues, it remains to be seen whether the decline in landing costs will translate into lower pump prices for consumers.
