In a dramatic twist that could reshape Nigeria’s fuel market dynamics, oil marketers are contemplating a return to petrol imports, citing the reduced landing cost of imported Premium Motor Spirit (PMS) at N922.65 per litre. This development, announced via Punch Newspaper’s official X handle, comes as imported petrol edges out the pricing advantage of locally refined fuel from the Dangote Petroleum Refinery.
Industry insiders revealed that the landing cost—a metric that includes shipping fees, import duties, and exchange rate fluctuations—has dropped significantly from the previous N955 per litre, marking a N32.35 reduction. This reduction has sparked interest among marketers who see a more competitive profit margin in imports.
One major marketer, speaking on condition of anonymity, explained the rationale: “The lower cost of imported petrol is often an incentive to dealers, and you can’t fault marketers who decide to take this route.”
The Dangote Petroleum Refinery recently attributed the rise in petrol prices from N899.50 to the current levels to the soaring cost of crude oil, the primary input for refining petroleum products. However, the latest decrease in landing costs hints at some relief from the pressures of global market volatility and the perennial supply chain bottlenecks.
Despite this, the retail price of petrol in Nigeria remains exorbitantly high. In the Federal Capital Territory, major marketers continue to sell PMS at prices ranging between N990 and N1,010 per litre. This price disparity, even amidst declining import costs, raises concerns about how swiftly reductions in landing costs are passed on to end consumers.
Data from the Major Oil Marketers Association of Nigeria (MOMAN) underscores this trend. The competency centre daily energy data released on Friday indicated that the on-spot estimated import parity into tanks was N922.65 per litre—a reduction of N21 or 2.2% from N943.75 recorded just a day earlier.
Interestingly, while the daily costs show a slight decrease, the 30-day average cost of imported petrol has been on a steady climb. By Friday, it had risen to N939.52 per litre, up from N929.07 on Thursday and N900.74 on Tuesday.
The oil market now faces a critical turning point. If marketers fully embrace the importation option, this could challenge the dominance of Dangote’s refinery, which has positioned itself as a game-changer in Nigeria’s fuel production landscape.
As the situation unfolds, questions linger: Will marketers abandon local supplies for cheaper imports? Will consumers eventually benefit from the reduced landing costs? Or will the high retail prices persist, keeping Nigerians burdened by the cost of fuel?
For now, the market remains in flux, and the actions of oil marketers in the coming weeks could determine the next chapter in Nigeria’s energy narrative.
PIONEER NEWS 