Imported Petrol Landing Cost Now Cheaper Than Dangote’s Price

Oil marketers have revealed that the landing cost of Premium Motor Spirit (PMS), commonly known as petrol, dropped to ₦922.65 per litre as of Friday, reflecting a decrease of ₦32.35 from the ₦955 per litre recorded at the Dangote Petroleum Refinery’s loading gantry.

This reduction, attributed to declining global crude oil prices and adjusted exchange rates, offers a potential incentive for marketers to consider resuming petrol imports.

“The lower cost of imported petrol is often an incentive to dealers, and you won’t blame marketers who import the product,” a major marketer who spoke with Punch stated anonymously due to lack of authorization to speak on the matter.

Despite the landing cost reduction, retail petrol prices remain high in Nigeria, with major marketers selling between ₦990 and ₦1,010 per litre in the Federal Capital Territory.

A report from the Major Energies Marketers Association of Nigeria (MOMAN) noted that the average import parity into tanks was ₦922.65 per litre on Friday, down 2.2% from the ₦943.75 per litre quoted on Thursday.

However, the 30-day average cost climbed to ₦939.52 per litre, reflecting persistent challenges in Nigeria’s downstream sector.

Further checks revealed slight reductions in depot prices across the country. Key marketers such as Nipco, Aiteo, and Sahara reduced their prices by ₦10 to ₦20 per litre during the week.

In Port Harcourt, Bulk Strategic Depot recorded a reduction of ₦24, closing at ₦981 per litre. Depots in Delta and Calabar maintained a price range of ₦972 to N990 per litre.

Petrol Imports Resume Amid Dangote Refinery Concerns

Naija News reports that fresh findings indicate that oil marketers imported 57,301 metric tonnes of fuel between Tuesday, January 21, and Wednesday, January 22, 2025.

This equates to approximately 76.84 million litres of petrol delivered through vessels berthed at Apapa and Tincan ports in Lagos.

The imports have sparked controversy, with the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) criticizing the move.

National President Billy Gillis-Harry stated, “I am surprised to hear that. There was an agreement among stakeholders to halt imports for 180 days to allow the Dangote Refinery to prove its production capacity.”

No Binding Agreement on Import Ban – IPMAN

Contrary to PETROAN’s claims, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, clarified that the non-import directive was a mutual understanding, not a binding agreement.

“There was no agreement like that, but it was a mutual understanding not to import. It was because, at the time, Dangote products were cheaper than imported ones. NMDPRA is supposed to issue licenses to anyone who can import at a cheaper rate,” Ukadike explained.

The updated landing cost and declining ex-depot prices offer relief to marketers, but challenges persist due to fluctuating exchange rates and freight costs.