Fuel Prices Fall as Naira Gains Value Against the Dollar

The landing cost of petroleum fuel in Nigeria has dropped from N981/litre to N945.63/litre, according to data from the Major Energies Marketers Association of Nigeria (MEMAN). This decline is largely attributed to the appreciation of the naira against the US dollar and a fall in Brent crude prices.

On September 27, the exchange rate was N1,586.26 per dollar, an improvement from N1,667.22 on September 25. Simultaneously, Brent crude prices decreased from $73.67/barrel to $72.45/barrel. This combination of factors has also led to a slight reduction in the ex-depot prices of petrol in key cities like Lagos, Calabar, and Port Harcourt.

Other fuels have seen similar reductions, with the landing cost of diesel falling from N1,089/litre to N1,068.04/litre, and aviation fuel prices dropping from N1,117.34/litre to N1,079.79/litre.

Despite these market changes, some major fuel marketers in Lagos continue to sell petrol at N870/litre. Meanwhile, the Nigerian National Petroleum Company (NNPC) has kept pump prices market-driven, even as the company works with Dangote refinery on crude sales, which are expected to start from October 1, 2024.

These developments raise hopes for further fuel price reductions, easing the burden on consumers. Stakeholders remain watchful for the effects of the naira crude sale on the overall market.