N922/Litre: Marketers May Abandon Dangote Fuel for Cheaper Imports 

With Dangote fuel priced at N922 per litre, marketers are considering shifting to cheaper imports to cut costs and stay competitive in the market.

Oil marketers have revealed that as of Friday, the landing cost of Premium Motor Spirit (PMS), commonly referred to as petrol, has decreased to N922.65 per litre.

This figure indicates a decrease of N32.35 from the initial price of N955 per litre available at the Dangote Petroleum Refinery’s loading gantry.

The landing cost encompasses a range of expenses, including shipping fees, import duties, and exchange rates. A decrease in these costs is expected to influence the retail price of petrol, possibly making it more affordable for consumers.

Marketers are optimistic about the decrease, suggesting it could increase interest in resuming petrol imports that had previously declined due to cost challenges.

“The reduced price of imported petrol frequently serves as a motivation for dealers, and it’s understandable why marketers choose to import the product,” explained a major marketer who requested anonymity due to not having authorization to speak publicly on the issue.

Last Sunday, the Dangote Petroleum Refinery announced that the increase in petrol price from N899.50 was attributed to a rise in crude oil costs, which is a key component for refined petroleum products.

Nonetheless, this recent drop in landing costs—which represent the expenses involved in importing and distributing the product—indicates some respite from global market fluctuations and supply chain challenges.

Despite this decrease, petrol retail prices in Nigeria remain high. Major marketers continue to sell refined products at rates ranging from N990 to N1,010 per litre in the Federal Capital Territory.

Based on the most recent daily energy data from the Competency Centre, released by the Major Energies Marketers Association of Nigeria on Friday and accessed by our correspondent on Sunday, the estimated import parity into tanks was N922.65 per litre. This marks a reduction of N21 or 2.2 percent from Thursday’s figure of N943.75 per litre.

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.

The document also highlighted that the price of Brent crude was set at $78.29 per barrel, a decrease from $78.88 per barrel the day before, with an exchange rate of N1,550 to one dollar.

This cost is seen as a benefit for importers, offering private depot owners and independent marketers an alternative path to profitability and the chance to obtain cheaper products.

With the average ex-depot price across various locations ranging from N950 to N990 per litre, importers have an opportunity to cover costs well below recent historical averages while achieving sustainable profit margins.

The revised landing costs and adjusted ex-depot pricing suggest a more lucrative atmosphere for stakeholders in the downstream oil and gas industry. Nevertheless, they also underscore the persistent impact of exchange rate fluctuations and freight expenses on Nigeria’s energy market.

Additional investigations conducted by our correspondent while examining last week’s petrol price fluctuations at loading depots revealed that the commodity’s loading cost had decreased by N10.

Earlier in the week, Nipco raised its product price to N970 from N965 per litre. Aiteo ended the week at a rate of N960, while Sahara reduced its prices by N20, going from an earlier price of N980 to close at N960. Swift started with a price set at NN970 and settled down to NN900 by week’s end.. Wosbab and AA Rano both concluded their pricing for the week selling products costing $NNN100$perkg$.

In Port-Harcourt, Bulk Strategic Depot opened at N1,005 and closed at N981, showing a decrease of N24. Meanwhile, depots in Delta and Calabar kept their prices between N972 and N990.

76.84 million meters of imported petrol

Meanwhile, new findings indicate that oil marketers imported a total of 57,301 metric tonnes of fuel between Tuesday, January 21 and Wednesday, January 22 in the year 2025.

Using the conversion rate of 1,341 liters per metric tonne, this suggests that marketers delivered approximately 76.84 million liters of petrol over two days.

According to data from the Nigerian Port Authority, vessels carrying 20,400 metric tons and 36,901 metric tons docked at Lagos’s Apapa and Tincan ports at midnight and 3:49 p.m., respectively. These operations were managed by Tera Shipping Limited and Peak Shipping Agency Nigeria Limited.

The document further revealed that two vessels without documented capacity docked at the Dangote terminal in Lekki Deep Seaport on Sunday.

Commenting on the development, Billy Gillis-Harry, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, stated that stakeholders have reached an agreement to oppose the importation of refined petroleum products.

In an interview on Sunday, Gillis-Harry mentioned that the Nigerian Midstream and Downstream Petroleum Regulatory Authority should halt the issuance of import licenses for 180 days to validate the production capacity of the Dangote refinery.

He asked, “Is there anyone who has received imported fuel?”

When our correspondent told him about the volume of liters imported over two days, the official responded, “I am surprised to hear that. I’m very surprised because NMDPRA is leading the non-import agreement. The plan was to allow Dangote refinery 180 days to demonstrate its production capacity.”

“I would be surprised if anyone is currently importing fuel. Additionally, an industry stakeholder forum was inaugurated last week to oversee developments in the sector. An agreement within the industry specifies that no imports should occur, and Dangote has been assigned a specific timeframe to produce a designated daily amount for us.”

However, Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, stated that the non-import directive was a “mutual understanding” rather than a binding agreement.

In an interview, Ukadike mentioned that there wasn’t a formal agreement in place; rather, there was a mutual understanding not to engage in imports. This decision stemmed from the fact that at the time, Dangote products were more affordable than those brought in from abroad.

The NMDPRA is expected to provide licenses to anyone who can import at a lower cost. We’re all focused on finding cheaper rates, and that’s what’s currently happening.