Oil marketers have revealed that the landing cost of Premium Motor Spirit (PMS) as of Friday stood at ₦922.65 per litre. This price, which includes shipping, import duties, and exchange rates, is ₦32.35 lower than the ₦955 per litre offered at the Dangote Petroleum Refinery loading gantry.
This reduction in landing cost is expected to influence petrol prices at the pump, potentially driving marketers back to importing petrol.
A major marketer, speaking anonymously, stated, “The lower cost of imported petrol is often an incentive to dealers, and you won’t blame marketers who import the product.”
Dangote Fuel Faces Pricing Challenges Amid Crude Oil Price Hikes
Last Sunday, the Dangote Petroleum Refinery justified its increased petrol price of ₦899.50 per litre, citing rising crude oil costs. However, the recent decrease in landing costs suggests some relief from global market pressures and supply chain issues.
Despite this reduction, petrol prices across Nigeria remain high. Major marketers in the Federal Capital Territory still sell petrol between ₦990 and ₦1,010 per litre.
The Major Oil Marketers Association of Nigeria reported that Friday’s on-spot estimated import parity cost was ₦922.65 per litre. This marked a 2.2% decrease from Thursday’s ₦943.75 per litre. However, the average cost for 30 days increased to ₦939.52 per litre, up from ₦929.07 on Thursday.
The report also highlighted Brent crude oil’s benchmark price, which dropped to $78.29 per barrel, alongside an exchange rate of ₦1,550 per dollar.
Related Stories
- Court Adjourns Dangote Refinery’s N100bn Suit Against Marketers
- Dangote Refinery Denies Role in Petrol Pump Price Hike
- Serial Outages: Dangote, NNPCL, 250 Firms Generate 6500MW
- Dangote Petroleum Refinery Secures Deals for Affordable Petrol
Imported Petrol: A Competitive Alternative for Marketers
The decline in landing costs provides private depot owners and independent marketers with opportunities for cheaper alternatives and sustainable profit margins. With ex-depot prices ranging from ₦950 to ₦990 per litre, importers can generate better profits compared to historical averages.
Updated landing costs and aligned ex-depot pricing create a more favourable environment for stakeholders in Nigeria’s downstream oil sector. However, challenges like fluctuating exchange rates and freight costs continue to shape market dynamics.
Dangote Fuel Prices at Depots See Slight Adjustments
Depot prices showed minor reductions during the past week. Nipco’s prices fell to ₦970 from ₦965 earlier in the week. Aiteo closed at ₦960, while Sahara reduced its price from ₦980 to ₦960. Other depots, including Swift, Wosbab, and AA Rano, also adjusted prices to ₦960 per litre.
In Port Harcourt, Bulk Strategic Depot reduced its price by ₦24, closing at ₦981. Meanwhile, depots in Delta and Calabar maintained prices between ₦972 and ₦990 per litre.
76.84 Million Litres of Petrol Imported Within Two Days
Fresh findings revealed that oil marketers imported 57,301 metric tonnes of petrol between January 21 and 22, 2025. With 1,341 litres equivalent to one metric tonne, this totals 76.84 million litres of petrol imported in just two days.
Two vessels carrying 20,400mt and 36,901mt berthed at the Apapa and Tincan ports in Lagos. Additionally, two vessels berthed at the Dangote terminal in Lekki Deep Seaport on Sunday, according to the Nigerian Port Authority.
Stakeholders Debate Dangote Fuel’s Role in Reducing Imports
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, emphasized the 180-day period given to Dangote Fuel to demonstrate its production capacity.
He stated, “I am surprised to hear about fuel imports because the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) leads the non-import agreement.”
On the other hand, Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, described the non-import directive as a “mutual understanding” rather than a binding agreement.
“There was no formal agreement, but it was based on Dangote products being cheaper at the time. Marketers are simply pursuing cheaper alternatives,” Ukadike explained.
