The landing cost of petrol has recently experienced a notable reduction, dropping to N981 per litre, as per the latest figures released by the Major Oil Marketers Association of Nigeria on Thursday. This development marks a significant shift from the previous landing cost, which hovered around N1,130 per litre, highlighting a decrease of over N140 per litre.
As of September 25, 2024, this drop in the landing cost can be attributed to the ongoing decline in global crude oil prices, which have shown a consistent downward trend in recent times.
Crude oil traded at $71.41 per barrel on Thursday, reflecting a decline from the previous trading day when it was priced at $73.46 per barrel, as per industry data obtained from the Petroleum Ministry. The decrease in crude oil prices is seen as one of the primary reasons behind the reduction in petrol's landing cost.
According to data from Statistica, a global analytics firm, the average price of Brent crude in August 2024 was recorded at $80.36 per barrel. However, fluctuations in crude prices, alongside foreign exchange rate dynamics, have played pivotal roles in determining the cost of refined petroleum products like petrol, diesel, aviation fuel, and kerosene.
Despite Brent crude, which serves as the global benchmark for oil prices, averaging above $80 per barrel in August 2024, prices have fluctuated in September, moving between $70 and $75 per barrel.
In their statement, Statistica highlighted the reasons behind this trend, explaining that the decrease in prices from the previous month is largely driven by lower oil demand in China, as well as announcements from the Organisation of Petroleum Exporting Countries (OPEC), which indicated expectations of an increase in oil production levels.