Despite a significant 20.34% reduction in the landing cost of Premium Motor Spirit (PMS), commonly known as petrol, to N971.57 per litre over the past three months, retail prices have skyrocketed by 71.79% to N1,060 per litre.
Data from the Major Energies Marketers Association reveals a steady decline in landing costs: N1,219 per litre in August, N945.63 in September, N903.64 in October, and N971.57 in November.
However, the retail price has defied logic, increasing from N617 per litre on August 1, 2024, to N1,060 per litre by November 8, 2024. This disparity has raised concerns among experts and the Nigeria Labour Congress (NLC).
The NLC has accused fuel marketers of exploiting Nigerians, contending that pump prices exceed actual market value. The organization demands accountability from both marketers and the government, citing heightened suffering and hunger due to economic policies.
Despite the current disparity, experts anticipate a corresponding drop in retail prices following the reduced landing cost.
_Economic Challenges_
The increase in retail prices, despite falling landing costs, is attributed to factors such as:
– Deregulation of the fuel market
– Exchange rate fluctuations
– Rising inflation
– Broader economic challenges
The Nigerian government and fuel marketers face growing pressure to address the petrol price hike and alleviate economic strain on citizens.
