The Major Energies Marketers Association of Nigeria (MEMAN) has announced a significant decrease in the landing cost of imported premium motor spirit (PMS), which now stands at N797.66 per litre, down from N817.82 per litre recorded on March 14.
In its daily energy bulletin, MEMAN reported that the on-the-spot rate at the NPSC-NOJ terminal decreased to N797.73 per litre, compared to the previous week’s rate of N817.9.
Similarly, the average price for a 30-day period also saw a reduction, falling from N854.15 to N851.76 per litre.
The report further highlighted that Brent crude prices have experienced a slight increase, now benchmarked at N70.58 per barrel, up from N69.88 earlier this month.
Additionally, the exchange rate remains at N1,517.93 per dollar, with oil marketers calculating the product quantity at 38,000 metric tonnes.
Factors influencing these fluctuations include geopolitical dynamics, economic conditions, market developments in China, seasonal variations, and global production trends.
Despite these factors, the foreign exchange rate has shown stability with only minor fluctuations.
MEMAN noted that landing costs are heavily influenced by these variable elements, which may change several times within a single day. Opportunities for cost savings exist through negotiation, improved access to foreign exchange, and enhanced logistics efficiency, such as minimizing ship-to-ship transfers or maximizing cargo loads.
Moreover, the report noted a reduction in the price at Dangote Petroleum Refinery’s loading gantry, or ex-depot price, which decreased from N825 per litre to N815.
Quotes from the report indicate that “International Petroleum Product Pricing is currently experiencing significant volatility due to geopolitical and economic factors, including events in the Middle East, China’s market dynamics, seasonal variations, production status, and other global influences.”
Additionally, it stated, “The foreign exchange rate remains fairly stable, with minimal fluctuations observed over recent periods.”
“Landing cost, being fundamentally influenced by these elements, is likely to change several times intra-day. Savings can be achieved through negotiation, access to foreign exchange, and logistics efficiencies, e.g., eliminating STS where possible or receiving larger cargos.”
