Oil marketers are increasingly considering imported Premium Motor Spirit (PMS) as its landing cost drops to N922.65 per litre, undercutting the N955 per litre price offered by the Dangote Petroleum Refinery. This price shift, attributed to reduced shipping, import duties, and exchange rate costs, marks a significant N32.35 decrease and could reshape Nigeria’s fuel market dynamics.
The lower cost of imported fuel is expected to spark renewed interest among dealers. A marketer, speaking anonymously, noted, “This is an incentive for dealers, and it’s understandable why they might choose to import.”
The Dangote Petroleum Refinery recently raised its petrol price from N899.50 due to increased crude oil costs. However, the latest decline in landing costs suggests easing pressures from global supply chain challenges. Despite this, petrol prices for consumers remain high, ranging from N990 to N1,010 per litre in Abuja.
Data from the Major Energies Marketers Association of Nigeria highlights a further reduction in landing costs, which stood at N922.65 per litre on Friday, down from N943.75 on Thursday. Additionally, the price of Brent crude fell slightly to $78.29 per barrel, while the exchange rate stabilized at N1,550 per dollar. These developments provide marketers with an opportunity to import at competitive rates and improve profitability.
Meanwhile, over 76.84 million litres of petrol were imported between January 21 and 22, arriving at Lagos ports via Tera Shipping Limited and Peak Shipping Agency Nigeria Limited. This volume reflects a rising trend in fuel imports, despite industry discussions to prioritize local refining.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, expressed surprise at the imports, emphasizing the existing understanding to support Dangote’s refinery. However, Independent Petroleum Marketers Association of Nigeria spokesman Chinedu Ukadike clarified that the non-import directive was a “mutual understanding,” not a binding agreement, adding, “Cheaper rates will always drive decisions.”
The evolving fuel market presents opportunities and challenges, with marketers balancing cost efficiency against local production goals. The coming weeks will reveal whether the imported fuel trend persists or if the Dangote refinery regains its price competitiveness.
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