The Major Energy Marketers Association of Nigeria (MEMAN) has reported a slight decline in the landing cost of Premium Motor Spirit (PMS), commonly known as petrol, indicating some stability in the downstream sector.

Naija News reports that the landing cost dropped marginally to ₦970 per litre in December 2024, compared to ₦971 per litre in November.

This reduction aligns with a recent dip in crude oil prices, which fell to $73.77 per barrel on Wednesday from $74 per barrel the previous week.

In its daily energy bulletin, obtained by Vanguard, MEMAN attributed the latest landing cost to an exchange rate of ₦1,533.57/$ and a crude oil price of $73.91 per barrel (Brent).

The association noted: “International petroleum product pricing is experiencing significant volatility due to geopolitical and economic factors, including events in the Middle East, China market dynamics, and the market of the recent USA elections outcome.

“The foreign exchange rate is also experiencing volatility. Landing cost, being fundamentally influenced by these elements, is likely to change several times intra-day.”

Despite the changes in landing costs, the retail price of petrol in Lagos has remained steady at ₦1,025 per litre.

Speaking on the situation, Ehimen Joseph, Chairman of the Lagos State Chapter of MEMAN, explained: “The price of petrol is determined by market forces under a deregulated market regime. A drop in price is possible.”

Adding to this perspective, Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), remarked: “The price of petrol cannot just drop spontaneously, as marketers have large stocks. Until it is finished, there will be no reduction.

“But the fall in price is possible over time based on market forces and foreign exchange volatility. In other words, fuel price reduction cannot be spontaneous. The market will definitely have a lag, that will be sustained within a month or two pending marketer’s depleted stocks and sustainable foreign exchange.”