The landing cost of Premium Motor Spirit (PMS), commonly known as petrol, in Nigeria has decreased to ₦774.82 per litre, marking a significant reduction from previous rates. This decline is attributed to falling global crude oil prices and has sparked heightened competition among key players in the country’s downstream oil sector.
Industry stakeholders anticipate that this reduction in landing costs could lead to a decrease in pump prices, potentially bringing them down to approximately ₦800 per litre. This projection is based on the current landing cost and the competitive dynamics among major oil marketers.
The recent commissioning of the 650,000-barrel-per-day Dangote Refinery has intensified competition within Nigeria’s oil industry. In response to the refinery’s pricing strategy, the Nigerian National Petroleum Company Limited (NNPCL) has adjusted its prices to remain competitive. This development has led to a price war, with retail marketers now considering imported products over locally refined options due to more favorable pricing.
The decline in global crude oil prices has been a significant factor in reducing the landing cost of petrol in Nigeria. As of mid-March 2025, Brent Crude prices have fallen to around $70 per barrel, contributing to the lower costs of imported PMS.
As the market continues to adjust to these changes, consumers may benefit from reduced fuel prices. However, the ongoing price competition among major oil marketers necessitates careful monitoring to prevent potential monopolistic practices and ensure sustained benefits for consumers.
