Crude Oil Prices Drop by 8%, Causing Imported Petroleum Products Prices to Fall in Nigeria
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Crude Oil Prices Drop by 8%, Causing Imported Petroleum Products Prices to Fall in Nigeria

Crude oil prices have experienced an 8% drop, falling from over $85 per barrel to $78.17 per barrel, leading to a decrease in the prices of imported petroleum products in Nigeria.

Previously, at the price of $85 per barrel, the cost of diesel stood at over N1,145 per litre. However, with the recent price drop, the Major Energy Marketers Association of Nigeria (MEMAN) has reported that the price of imported diesel has decreased to N1,045.15 per litre, reflecting an 8.7% reduction.

Similarly, the price of Premium Motor Spirit (PMS), commonly known as petrol, has fallen to N922.65 per litre, down from N939.50 per litre in the domestic market.

MEMAN’s report highlighted that the landing costs for petroleum products in Apapa, Lagos, are influenced by several factors, including a 32% finance cost, 2% levy from the Nigerian Maritime Administration and Safety Agency (NIMASA), and a 0.5% levy from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The association further noted that international petroleum product pricing is highly volatile due to geopolitical tensions, economic factors, and global market dynamics. This volatility is exacerbated by events in the Middle East, China’s market trends, seasonal variations, and production statuses across the globe.

While the foreign exchange rate has remained stable, MEMAN cautioned that landing costs could fluctuate intra-day, making it difficult to predict consistent pricing.

Oil marketers have expressed willingness to consider importation if the current market situation persists over time, as the prices of petroleum products are driven by market forces under the ongoing deregulation regime.

Dr. Billy Harry, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), also mentioned that his members are committed to supporting the 650,000 bpd Dangote Petroleum Refinery to help stabilize the domestic market.

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