By Mario Deepromoter
Hopes of a reduction in petrol prices have been dashed as the Federal Government’s decision to increase the landing cost of imported Premium Motor Spirit (PMS), commonly known as petrol.
The latest data from the Nigerian National Petroleum Company Limited (NNPCL) shows that the landing cost of imported PMS has increased by 4%, from N919.55 per litre in September to N956.13 per litre in October 2024.
This increase is due to the performance of the naira against the US dollar.
The naira exchange rate currently averages N1,650 in October compared to N1,625/$ in September.
Breakdown of the new landing cost
According to figures obtained from NNPCL’s pricing template, the total direct cost of PMS includes a product cost of N887.45 per litre, freight charges of N10.37 for transportation from Lome to Lagos, port charges of N7.37, a levy by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of N4.47, and storage costs of N2.58.
Vanguard reports that all the aforementioned fees bring the direct cost of PMS to N913.12 per litre.
When finance costs, such as letters of credit (N16.53) and interest (N43.01), are added, the total landing cost reaches N956.13 per litre.
New fuel prices at filling stations
Already, the impact of the rising landing costs has been pushed to petrol pump prices at filling stations.
Legit.ng reported that NNPCL and major marketers’ stations are selling petrol for above N1,000 per litre.
Meanwhile, independent marketers charge between N1,100 and N1,300 depending on the location.