Nigeria’s estimated petrol landing cost rose to ₦1,253.40 per litre on October 19, from ₦1,246.36 per litre recorded as the spot import parity price at ASPM Jetty in Apapa in the October 16 Energy Bulletin of the Major Energies Marketers Association of Nigeria (MEMAN).
The increase of ₦7.04 per litre represents a rise of approximately 0.56 per cent.
Meanwhile, Brent crude rose to $111.30 per barrel as of 11:35 a.m. West Africa Time on October 20, gaining 1.59 per cent. West Texas Intermediate (WTI) crude also climbed 2.16 per cent to $100.70 per barrel.
The rise in international crude prices came amid renewed concerns over global oil supplies, as attacks on tankers in the Strait of Hormuz and uncertainty surrounding the resumption of normal oil flows through the Persian Gulf heightened market tensions.
Reuters reported at least 18 tanker attacks over the preceding two weeks, citing data from ship-tracking firm Kpler. The firm also reported that average daily oil flows from the Persian Gulf had fallen to 8.5 million barrels, compared with more than 20 million barrels daily around two weeks earlier.
These disruptions have increased concerns about the reliability of oil shipments through the region, supporting crude prices as traders assess the risk of further supply interruptions.
The two petrol landing-cost estimates show a modest increase between October 16 and October 19. However, the figures alone do not establish whether all underlying pricing components remained unchanged during the period.
Import parity pricing estimates the cost of sourcing and delivering imported petroleum products to local terminals. It differs from depot gantry and filling-station prices and is influenced by factors including international refined-product prices, foreign exchange rates, freight, financing and regulatory charges.
Although rising crude prices could add pressure to petroleum supply costs if sustained, they do not translate automatically into equivalent changes in petrol landing costs. Refined-product prices and other import expenses also affect the final estimate.
Likewise, the increase in the estimated landing cost does not necessarily mean depot or pump prices will rise by the same amount. Domestic prices also depend on existing stock costs, distribution expenses and suppliers’ pricing decisions.