The recent reduction in the landing cost of Premium Motor Spirit (PMS) in Nigeria, dropping to N981 per litre from a previous N1,130 per litre, signals the possibility of a reduction in petrol prices at the pump. This drop is primarily attributed to the declining global crude oil prices, with Brent crude fluctuating between $70 and $75 per barrel in September, down from $80 in August.
Major oil marketers have resumed petrol imports, bolstered by the recent deregulation of the downstream sector, and the commencement of operations at the Dangote Petroleum Refinery. However, discrepancies have emerged regarding the cost at which the Nigerian National Petroleum Company (NNPC) is purchasing petrol from Dangote Refinery. The NNPC has stated it bought petrol at N898 per litre, but the refinery has denied this claim. The difference in pricing may lead to competition between imported fuel and that from the Dangote Refinery, possibly lowering prices for consumers.
This development brings hope for some relief to Nigerians, who have been facing high fuel prices in recent months.