Prices of imported petroleum products drop by 8% on oil market volatility

Crude oil prices dropped by 8 per cent to $78.17 per barrel, from more than $85 per barrel, weekend, causing imported petroleum products prices to crash in the domestic market. At the previous price of $85 per barrel of crude oil, a major feedstock for refining, the price of diesel stood at over N1, 145 per litre. But in its latest report, the Major Energy Marketers Association of Nigeria, MEMAN, put the price of imported diesel at N1, 045.15 per litre, indicating a decrease of 8.7 per cent from N1, 145 per litre.
The report also showed that the price of Premium Motor Spirit, PMS, also known as petrol crashed to N922.65 per litre, from N939.50 per litre in the domestic market. According to MEMAN, the landing costs of petroleum products into Apapa, Lagos was based on some factors, including 32 per cent finance cost, 2 per cent Nigerian Maritime Administration and Safety Agency, NIMASA levy and 0.5 per cent and Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA levy. It also said “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.”
The report also added: “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.” Oil marketers said they would consider importation should the domestic market situation persist for a long time.
According to them, the prices of petroleum products were driven by market forces under the current deregulation regime. However, in a telephone interview with Vanguard, the National President, Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, Dr. Billy Harry, said his members oil have an understanding to patronize the 650,000 bpd Dangote Petroleum Refinery.