Oil marketers in Nigeria have disclosed that the landing cost of Premium Motor Spirit (PMS), commonly known as petrol, as of Friday, stands at N922.65 per litre. This marks a significant decrease of N32.35 from the N955 per litre offered at the loading gantry of the Dangote Petroleum Refinery.
The landing cost, which accounts for various expenses including shipping, import duties, and exchange rates, has prompted optimism in the industry. Dealers suggest that the reduction could encourage more marketers to resume importing petrol, with lower importation costs providing an incentive for private depot owners and independent marketers to explore profitability in the sector.
A senior marketer, who requested anonymity due to lack of authorisation to speak on the matter, highlighted that the drop in the cost of imported petrol often entices dealers, especially when prices on the international market fluctuate.
Despite the decrease in landing costs, petrol prices in Nigeria remain relatively high, with major marketers continuing to sell petrol in the Federal Capital Territory at prices ranging between N990 and N1,010 per litre. This price stability comes amid ongoing concerns about the impact of global crude oil price increases on domestic fuel prices. Last Sunday, the Dangote Petroleum Refinery attributed its price hike from N899.50 to higher crude oil costs.
The latest reduction in the landing cost, which reflects the price of importing and distributing the product, has been seen as a sign of relief from the pressures of international market dynamics and supply chain challenges. While the drop is positive, the ex-depot prices—the price at which marketers buy petrol—remains elevated, ranging from N950 to N990 per litre across the country. This suggests that while importation costs have decreased, other factors, including exchange rate fluctuations and freight charges, continue to shape market conditions.
Recent data from the Major Energy Marketers Association of Nigeria shows that the import parity into tanks dropped to N922.65 per litre, a reduction of N21 or 2.2% from the previous day. However, the average 30-day price moved slightly higher to N939.52 per litre, compared to N929.07 on Thursday and N900.74 earlier in the week. The cost of Brent crude oil was recorded at $78.29 per barrel, down from $78.88, with the exchange rate set at N1,550 per dollar.
This reduction in import costs provides a pathway for marketers to cover their operational expenses more effectively and could signal a more profitable environment in Nigeria’s downstream oil sector. Nonetheless, the ongoing volatility in the international markets and the challenges posed by exchange rate movements continue to influence the retail price of petrol.
In related developments, data from the Nigerian Ports Authority shows that oil marketers imported a total of 57,301 metric tonnes of petrol between January 21 and January 22, 2025. This is equivalent to approximately 76.84 million litres. The shipments were handled by Tera Shipping Limited and Peak Shipping Agency Nigeria Limited, with vessels arriving at the Apapa and Tincan ports in Lagos.
Despite the ongoing imports, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, expressed surprise at the importation activity. He reminded stakeholders of the agreement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to halt the issuance of import licenses for 180 days, allowing the Dangote refinery time to prove its production capacity.
However, Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, clarified that the non-import directive was a “mutual understanding” rather than a binding agreement. According to Ukadike, the NMDPRA should permit importers to bring in fuel at cheaper rates, which explains the recent imports, as marketers are seeking to access more affordable products.
As the situation unfolds, the reduction in the landing cost of petrol is likely to have a ripple effect on prices at the pump, offering potential relief to consumers while also influencing the decisions of marketers and importers in Nigeria’s complex fuel market.
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