The landing cost of Premium Motor Spirit (PMS) has dropped significantly, now standing at N774.82 per litre, a figure lower than Dangote Refinery’s ex-depot price of N825 per litre.
This shift follows the recent reduction in global crude oil prices, which has influenced fuel costs across the country.
According to the Major Energies Marketers Association of Nigeria (MEMAN), the estimated import parity into tanks has reduced by N152.56 per litre, marking a 16.5% decline from the N927.48 per litre recorded on February 21, 2025.
This drop aligns with the ongoing downward trend in the global crude oil market, where Brent Crude has fallen to $70 per barrel, while US WTI is trading at $66.70 per barrel, compared to their respective February prices of $76 and $69.
The price reduction in crude oil is expected to bring further relief to consumers, as fuel prices may decline even more in the coming days.
Analysts suggest that petrol could soon retail at around N800 per litre, a significant drop from the current retail prices of N860 and N880 per litre in Lagos and Abuja.
Meanwhile, the Nigerian National Petroleum Company Limited (NNPC) and Dangote Refinery had earlier adjusted their petrol prices at the start of March, bringing some relief to consumers.
Market experts believe that this downward trend may continue if the global oil price remains stable or decreases further.
Reacting to this development, the spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, acknowledged the impact of crude oil prices on fuel costs.
He stated, “Crude oil is a major component in the production of fuel, so a further reduction in its price would definitely warrant a drop in petrol price, and it is possible to drop to N800 per litre.”
The ongoing decline in fuel prices is expected to positively impact transportation costs and ease financial pressure on commuters.
With petrol becoming slightly more affordable, motorists and transport operators may experience a reduction in expenses, potentially leading to cheaper public transportation fares.
However, industry experts caution that while the price drop is beneficial, the volatility of global oil markets means prices could fluctuate unexpectedly.
As fuel prices continue to decline, many Nigerians hope for sustained affordability, allowing for easier mobility and reduced financial strain on households.
