Petrol Landing Cost Increases by N88 per Litre in Just One Week
Petrol Landing Cost Increases by N88 per Litre in Just One Week
The cost of imported petrol in Nigeria rose significantly by ₦88 per litre in just one week, jumping from ₦797 to ₦885 per litre, as reported by the Major Energies Marketers Association of Nigeria (MOMAN).
This surge exceeds the current retail price of petrol from Dangote Refinery, which stands at ₦860 per litre, and its ex-depot price of ₦815 per litre. The recent drop in pump prices from ₦1,000 to approximately ₦860 was driven by Dangote Refinery’s price cuts aimed at aligning with decreasing landing costs. However, this price adjustment has resulted in substantial financial losses for marketers selling petrol at the reduced rate.
Market dynamics are anticipated to shift in the coming weeks amid ongoing tensions between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) regarding the naira-for-crude oil policy.
Dangote has recently halted fuel sales in naira, citing discrepancies between its crude procurement costs in US dollars and local sales revenues. This decision has led to an increase in loading costs at private depots in Lagos, which rose from below ₦850 per litre to nearly ₦900 per litre.
Meanwhile, efforts to stabilize fuel supply are in progress, with the Nigerian Ports Authority (NPA) announcing that seven vessels carrying 154.22 million litres of imported petrol are set to dock at various ports between March 17 and 23. These vessels are expected to arrive at Tincan Port, Lekki Deep Seaport, and Calabar Port. Additionally, Dangote Refinery imported over 654,766 metric tonnes of crude oil during this timeframe.
The naira-for-crude policy has raised concerns among industry stakeholders. Olufemi Adewole, Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DPPMAN), cautioned that this policy could destabilize Nigeria’s foreign exchange market and deter foreign investment.
Likewise, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) urged the government to prohibit fuel sales in dollars, contending that such a move would exacerbate inflation and economic instability.
During its first-quarter 2025 Press Training & Engagement in Lagos, MOMAN addressed ongoing resistance to deregulation. In a statement signed by CEO Clement Isong, the association underscored the need to transition to a fully deregulated market to enhance efficiency, transparency, and foster economic growth.
While acknowledging the challenges associated with this transition, MOMAN highlighted the vital role of regulatory bodies, such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in maintaining market stability and protecting consumers. Ultimately, MOMAN argued that deregulation would attract investments, encourage competition, and provide long-term benefits for both businesses and consumers.
