Imported petrol landing cost drops to N840/litre amid price hike

The landing cost of imported premium motor spirit (petrol) has dropped marginally from N849.61 to N839.97 per litre.

This was according to data from the Major Energies Marketers Association of Nigeria.

In the energy bulletins released by the MEMAN Competency Centre in the past, it was observed that the landing cost of imported petrol was an average of N849.61 on October 13; N847.61 on October 14; N841.54 on October 20; and N839.97 per litre on October 21.

However, despite the drops, depot owners have yet to reduce their gantry prices, and filling stations still sold petrol around N915 and above on Thursday.

According to the MEMAN report, the latest landing cost is about N37 cheaper than Dangote refinery’s gantry price, which was put at N877/ litre.

The PUNCH reports that Dangote raised its gantry prices from N820 to N877 without any notice.

This came at a time Nigerians were expecting the refinery to crash the pump prices of petrol to N841 per litre as promised during the launch of its compressed natural gas-powered trucks on September 15.

Our correspondent reports that some major filling stations like Mobil now sell petrol at N915 per litre, while the Nigerian National Petroleum Company Limited sells the product for N928 at its retail outlets.

Dangote partners like Heyden and MRS keep their prices above N920 per litre, indicating the effect of Dangote’s N977/litre ex-depot price.

Independent marketers have once said that imported petrol should not be cheaper than the locally produced one.

Since the Dangote refinery began petrol production in September 2024, the company has repeatedly reduced petrol prices, affecting the margins of importers who were forced to bring down their prices to retain their customers.

At one point, importers and retailers said they were counting losses, even as they accused Aliko Dangote of plans to monopolise the petroleum sector.

A Dangote source told our correspondent that some marketers approached the regulatory authority, urging it to prevent the Dangote refinery from ‘dictating’ fuel prices.

When the Dangote refinery announced in September that it would drop petrol prices from N865 per litre to N841 in Lagos and the South West and N851 in Abuja, Delta, Edo, Rivers and Kwara, depot owners kicked.

The Depot and Petroleum Product Marketers Association of Nigeria’s Executive Secretary, Olufemi Adewole, said that portraying Dangote refinery’s repeated fuel price cuts as patriotic gestures overlooked both their timing and their effect on the market.

Adewole said the price reductions were strategically timed when other importers had active cargoes at sea or in tanks, creating price shocks that undermined competition and imposed financial strain on fellow market participants, including the refinery’s own domestic customers.

Adewole said the assertion that Nigeria’s downstream stability rests solely on one refinery is misleading and dismissive of the broader ecosystem.

“While we welcome the Dangote refinery as a major infrastructure project, its contribution has peaked at only 30 to 35 per cent of national demand. The balance continues to be supplied by responsible petroleum product marketers, including DAPPMAN members, who import and distribute under strict regulatory oversight by the Nigerian Midstream and Downstream Petroleum Regulatory Authority,” he stated.

The PUNCH reports that the sudden jump in petrol prices from about N865 per litre to almost N1,000 in some parts of the country is still yet a surprise to many Nigerians, especially as the two main factors that determine the price—crude oil and the exchange rate—have both been stable lately.

MEMAN’s report showed a decline in both exchange rate and crude prices.

Our correspondent observed that the naira, which exchanged for around N1,700 to a dollar in the first quarter of this year, now trades around N1,470. Likewise, crude oil, which once sold above $80 dollars per barrel earlier in the year, is now around $61.

According to data from energy intelligence firm Kpler, crude oil prices fell sharply last week, with Brent dropping below $60 per barrel for the first time since May after US President Donald Trump threatened higher tariffs on Chinese goods. Although the president later backtracked, the brief episode rattled the market, exposing its fragility to economic shocks.

The PUNCH reports that the timing of that fall coincided with a sudden increase in petrol prices by depot owners and the Dangote refinery, deepening confusion among consumers who are already struggling with high costs of living.

When Nigerians were expecting a reduction in petrol prices, the figures surged about two weeks ago.

The Independent Petroleum Marketers Association of Nigeria blamed depot owners for the hike, which has climbed to between N930 and N950 per litre in most parts of the country.

They have also blamed the Dangote refinery for refusing to load their trucks despite making payments over three weeks ago.

Following the increase, filling stations across the country raised their pump prices to match the new regime.(Punch)