The price of Premium Motor Spirit (PMS), commonly known as petrol, is expected to decline following a reduction in its landing cost.
Recent data show that the landing cost of petrol has dropped to N774.82 per litre. This price is now lower than the ex-depot price of Dangote Refinery’s fuel, which is currently N825 per litre.
According to the Major Energy Marketers Association of Nigeria (MEMAN), the cost of importing petrol has decreased by N152.56, or 16.5 percent, from N927.48 per litre recorded on February 21, 2025.
This decline is attributed to the continuous drop in global crude oil prices. Brent Crude has fallen to $70 per barrel, while U.S. West Texas Intermediate (WTI) is now trading at $66.70 per barrel, down from approximately $76 and $69 in February.
With the reduced crude prices, the cost of importing petrol is lower, potentially bringing pump prices down to around N800 per litre. Currently, prices in Lagos and Abuja range between N860 and N880 per litre.
Earlier this month, both the Nigerian National Petroleum Company Limited (NNPC) and Dangote Refinery reduced their petrol prices to N860 and N880 per litre in Lagos and Abuja, respectively.
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, noted that petrol prices might drop further.
“Crude oil is a major factor in fuel production, so if its price continues to fall, petrol prices could also reduce. It’s possible for it to drop to N800 per litre,” he said.
