The pump price of Premium Motor Spirit (PMS), commonly known as petrol, is expected to decrease following a significant reduction in landing costs.
Recent data from the Major Energy Marketers Association of Nigeria (MEMAN) show that the landing cost of petrol has dropped to N774.82 per litre, making it cheaper than Dangote Refinery’s ex-depot price of N825 per litre.
This represents a 16.5% decline from the N927.48 per litre recorded on February 21, 2025, amounting to a N152.56 reduction.
The fall in landing cost is attributed to a continued decline in global crude oil prices. Brent Crude has dropped to $70 per barrel, while U.S. West Texas Intermediate (WTI) now trades at $66.70 per barrel, down from $76 and $69 in February.
With this trend, industry analysts predict that marketers will adjust pump prices downward, offering relief to Nigerian consumers amid ongoing economic challenges.
The lower crude prices have reduced the cost of importing petrol, potentially bringing pump prices down to around N800 per litre, from the current N860 to N880 per litre seen in Lagos and Abuja.
Earlier this month, both the state-owned Nigerian National Petroleum Company Limited (NNPC) and Dangote Refinery cut their petrol prices to N860 and N880 per litre in Lagos and Abuja, respectively.
Speaking on the development, Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, said petrol prices could drop further.
“Crude oil is a major component in fuel production, so a further reduction in its price would lead to lower petrol prices. It can drop to N800 per litre,” he said.