litre on February 27, and the product was expected
to be sold at N143.25 that day if the price of the
product was adjusted to reflect the change in crude
oil prices, according to Petroleum Products Pricing
Regulatory Agency.
The latest pricing template obtained by our
correspondent from the PPPRA showed that the
landing cost declined further to N95.16 per litre on
March 10 from N115.52 per litre on March 6.
The expected open market price of the product fell
to N114.53 per litre on Tuesday from N134.89 per
litre last Friday.
The international oil benchmark, Brent crude, has
been on a downward trend since the coronavirus
broke out in China. It tumbled by as much 30 per
cent on Monday to $31, its lowest in four years as
Saudi Arabia launched a price war.
The expected open market price of petrol was
N182 per litre at the end of last year as Brent,
against which Nigeria’s oil is priced, traded around
$67 per barrel.
With the recent steep fall in crude oil prices, the
cost of petrol plus freight dipped to $379.37 per
metric tonne (N86.84 per litre) on Tuesday from
$466.43 per MT (N106.78 per litre) last Friday,
according to the PPPRA.
The cost plus freight, which stood at $668.29 per
MT (N152.99 per litre) on December 31, 2019, fell
to $502.29 per MT (N114.97 per litre) on February
27, 2020.
Nigeria, Africa’s largest oil producer, relies largely
on importation for petrol and other refined products
as its refineries have remained in a state of
disrepair for many years.
While the diesel and kerosene prices had been
deregulated, the government still pay subsidy to
make petrol cheaper at the pump.
The landing cost of petrol has fallen by 41.5 per
cent since December 31, 2019 when it stood at
N162.68, the PPPRA data showed.
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