The landing cost of imported Premium Motor Spirit (PMS) dropped to N922.65 per litre as of Friday, sparking renewed interest among oil marketers in importing fuel. This development, according to industry sources, creates significant competition for the Dangote Petroleum Refinery, whose petrol price at the loading gantry stands at N955 per litre.
Marketers revealed that the current landing cost includes shipping fees, import duties, and fluctuating exchange rates. The reduction of N32.35 per litre from Dangote’s price is expected to influence market dynamics and potentially prompt some dealers to shift focus to fuel imports.
Speaking under anonymity, a major marketer said, “The lower cost of imported petrol often incentivizes marketers to import products. You cannot blame them for exploring options that make business sense.”
Dangote Refinery’s Price Hike Explained
The Dangote Petroleum Refinery recently attributed its price hike from N899.50 to N955 per litre to the rising cost of crude oil, a critical input in refining petroleum products. However, the recent dip in the landing cost of imported PMS offers some relief amidst global crude price volatility and supply chain challenges.
Despite the drop in landing costs, retail prices remain high across Nigeria. Major marketers continue to sell petrol between N990 and N1,010 per litre in Abuja and other regions, leaving consumers grappling with the financial strain of fuel purchases.
Data Shows Price Fluctuations Across Depots
According to the latest daily energy data released by the Major Energies Marketers Association of Nigeria, the estimated landing cost of imported PMS stood at N922.65 per litre on Friday, reflecting a 2.2% drop from N943.75 per litre on Thursday. However, the average cost for a 30-day period rose slightly to N939.52 per litre on Friday, compared to N929.07 on Thursday.
Depot prices across Nigeria also witnessed fluctuations last week.
- Nipco closed the week at N970 per litre after an earlier price of N965.
- Sahara reduced its price by N20, ending at N960.
- Aiteo and Swift also closed at N960 per litre.
- In Port Harcourt, Bulk Strategic Depot prices dropped from N1,005 to N981 per litre.
Fresh Fuel Imports Recorded
Findings revealed that between January 21 and January 22, 2025, oil marketers imported 76.84 million litres of petrol, equivalent to 57,301 metric tonnes, into the country. Data from the Nigerian Ports Authority indicated that vessels carrying 20,400MT and 36,901MT berthed at Lagos ports, while other vessels arrived at the Dangote terminal in Lekki Deep Seaport.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, expressed surprise at the imports. He noted that stakeholders previously agreed to halt fuel imports for 180 days to allow the Dangote Refinery to prove its production capacity.
“It’s surprising that fuel is being imported now. The agreement was to support Dangote’s production. However, this development needs further clarification,” Gillis-Harry stated.
Marketers Highlight Lack of Binding Agreement
The Independent Petroleum Marketers Association of Nigeria’s National Publicity Secretary, Chinedu Ukadike, clarified that there was no formal directive to halt imports but rather a mutual understanding. “The earlier directive wasn’t binding. With Dangote’s products initially cheaper, there was no need for imports. Now, cheaper imported products have returned to the market,” he explained.
Implications for the Oil Sector
As imported fuel becomes a viable alternative due to cost reductions, private depot owners and marketers are poised to benefit from improved margins. The shift highlights the influence of exchange rate fluctuations and global freight costs on Nigeria’s energy market.
