By Miracle Ogunde
Oil marketers in Nigeria appear to be considering a shift from Dangote Petroleum Refinery’s products to imported petrol, as the landing cost of imported fuel has recently fallen below the refinery’s prices.
Reports indicate that as of Friday, the landing cost of Premium Motor Spirit (PMS) stood at N922.65 per litre. This cost encompasses shipping, import duties, and exchange rate expenses. Comparatively, Dangote’s loading gantry price for petrol was N955 per litre, marking a difference of N32.35 per litre.
The drop in the landing cost of imported petrol is expected to influence its retail price and may encourage marketers to favour imports over domestic products.
A major oil marketer, speaking anonymously, highlighted this development: “The lower cost of imported petrol is often an incentive to dealers and you won’t blame marketers who import the product.”
According to Punch, data from the Major Energies Marketers Association of Nigeria, obtained on Sunday, shows the on-spot estimated import parity cost into tanks fell to N922.65 per litre on Friday, representing a reduction of N21 or 2.2 per cent from the N943.75 per litre recorded on Thursday.
The document further revealed that the average cost for 30 days increased to N939.52 per litre on Friday, compared to N929.07 per litre on Thursday and N900.74 per litre on Tuesday. Brent crude was benchmarked at $78.29 per barrel on Friday, slightly lower than the previous day’s $78.88 per barrel, with an exchange rate of N1,550 per dollar.
This development offers private depot owners and independent marketers the chance to source fuel at more competitive prices, enhancing profitability. With ex-depot prices ranging between N950 and N990 per litre across different locations, importers have an opportunity to achieve lower costs and sustainable margins.
The Dangote Petroleum Refinery recently attributed the increase in its petrol price from N899.50 to a rise in crude oil costs. However, the current reduction in landing costs signals some relief from global market pressures and supply chain issues.
Despite the decrease, retail prices in Nigeria remain high, with major marketers selling petrol between N990 and N1,010 per litre in the Federal Capital Territory.
Analyses of depot prices last week showed that petrol loading costs were reduced by N10 in various locations. For instance, Nipco lowered its price from N965 to N970, Aiteo and Sahara both closed the week at N960, and depots such as Wosbab and AA Rano also settled at N960 per litre. In Port Harcourt, Bulk Strategic Depot dropped its price from N1,005 to N981, while Delta and Calabar depots maintained a range of N972 to N990 per litre.
Between Tuesday, 21 January, and Wednesday, 22 January 2025, oil marketers reportedly imported 57,301 metric tonnes of petrol, equivalent to approximately 76.84 million litres.
The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, emphasised the need for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to halt the issuance of import licences temporarily to assess the refinery’s production capacity.
Gillis-Harry stated, “Well, is there anybody that has landed imported fuel?”
However, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, clarified that the decision to avoid importation was not a binding agreement but a mutual understanding, initially due to the lower prices offered by Dangote products.
“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,” Ukadike explained. “NMDPRA is supposed to give (licence to) anyone who can import at a cheaper rate. We all are looking at cheaper rates, and that is what is happening.”
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