- Oil marketers reported a significant drop in the landing cost of petrol to N922.65 per litre, a N32.35 reduction from previous levels
- Despite lower import costs, petrol retail prices remained high in Nigeria, ranging from N990 to N1,010 per litre, sparking public debate
- Marketers imported over 76 million litres of petrol in just two days, raising concerns despite previous agreements to halt imports until Dangote's refinery scales up
Oil marketers in Nigeria have revealed a significant reduction in the landing cost of Premium Motor Spirit (PMS) as of Friday, with the price dropping to N922.65 per litre, down N32.35 from the N955 per litre at the Dangote Petroleum Refinery.
This decrease has sparked fresh debates about the ongoing price structure of petrol in the country and the role of oil imports in Nigeria's energy market.
Marketers say the drop in landing cost reflects a reduction in expenses like shipping, import duties, and exchange rates, which could help drive the profitability of petrol imports.
Despite the decrease in the cost of importing the fuel, the retail price of petrol remains high in Nigeria, with major marketers selling it between N990 and N1,010 per litre in the Federal Capital Territory.
A key aspect of the price reduction is the drop in the cost of Brent crude oil, which was quoted at $78.29 per barrel on Friday.
This, coupled with an exchange rate of N1,550 per dollar, has helped to make imported petrol more affordable. However, despite this relief, the retail prices remain elevated, and marketers have expressed interest in returning to petrol imports due to the lower cost of sourcing the product.
There has been criticism regarding the continuation of high retail prices despite the decrease in landing costs.
A major marketer, who wished to remain anonymous, explained that the reduction in cost provides an opportunity for profitability, but it hasn't yet translated to lower consumer prices.
In addition to the cost fluctuations, new data revealed that oil marketers imported 57,301 metric tonnes of fuel in just two days between January 21 and January 22, 2025, equating to approximately 76.84 million litres of petrol.
This increase in imports has raised concerns, especially as there had been an informal agreement within the industry to stop petrol imports while the Dangote refinery ramps up production.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had suggested a 180-day period for Dangote's refinery to prove its production capacity.
However, despite this, some marketers continue to import petrol, as evidenced by the recent shipment activity.
Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, expressed surprise at the importation of petrol, stating that the NMDPRA had not issued licenses for imports under the current arrangement.
Meanwhile, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, clarified that the decision to limit imports was not legally binding but rather a mutual understanding, citing cheaper prices from Dangote's refinery as a motivating factor.
Nigeria tops list of African countries with highest number of refineries
Meanwhile, TheRadar earlier reported that Nigeria topped the continent in oil refining infrastructure with nine facilities, including the massive Dangote Refinery.
South Africa, Ghana, Angola, and Sudan also featured, contributing significantly to Africa's refining capacity.
