Fuel Price Controversy: Landing Cost Crashes, But Marketers Refuse To Cut Pump Prices

The landing cost of imported Premium Motor Spirit (petrol) has dropped slightly from ₦849.61 to ₦839.97 per litre, according to new data released by the Major Energies Marketers Association of Nigeria (MEMAN).....KINDLY READ THE FULL STORY HERE▶

Figures from MEMAN’s energy bulletin showed that petrol landed at ₦849.61 per litre on October 13, ₦847.61 on October 14, ₦841.54 on October 20, and ₦839.97 on October 21.

Despite the steady decline in landing costs, depot owners have yet to lower ex-depot prices, forcing filling stations nationwide to continue selling petrol for ₦915 and above.

Interestingly, the latest landing cost is about ₦37 per litre cheaper than the Dangote Refinery’s ex-depot price of ₦877 per litre. Dangote had recently increased its gantry price from ₦820 to ₦877 per litre without prior notice, dashing public hopes of a price reduction to around ₦841 per litre — a figure earlier projected during the launch of its CNG-powered trucks.

Currently, major marketers such as Mobil sell petrol at ₦915 per litre, while NNPC retail outlets dispense at ₦928. Dangote’s distribution partners, including Heyden and MRS, maintain prices above ₦920, reflecting the refinery’s revised pricing structure.

Marketers Raise Concerns

Independent marketers have long maintained that imported fuel should not cost less than locally refined products.

Since the Dangote Refinery began operations in September 2024, its aggressive pricing adjustments have unsettled importers, who accuse Africa’s richest man of trying to dominate the downstream oil sector.

Sources at the refinery told Punch that some marketers have even petitioned regulators, urging them to intervene and stop Dangote from “dictating” market prices.

Similarly, the Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) blamed the refinery for creating “price shocks” that destabilize the market.

DAPPMAN Executive Secretary, Olufemi Adewole, said:

“Portraying Dangote refinery’s repeated price cuts as patriotic ignores their impact. These reductions often coincide with cargo arrivals, causing disruptions that hurt importers — and sometimes even Dangote’s own clients.”

He stressed that Nigeria’s downstream sector cannot rely solely on one refinery, noting that Dangote currently supplies only 30–35% of national demand, while independent marketers cover the rest under regulatory supervision.

Why Pump Prices Remain High

Despite a fall in landing costs, Punch reports that petrol prices have surged from about ₦865 to nearly ₦1,000 per litre in some areas — even though both crude oil prices and the naira exchange rate have stabilized.

MEMAN data revealed that the naira has strengthened from about ₦1,700/$ earlier in the year to ₦1,470/$, while Brent crude has dropped to $61 per barrel, its lowest since May.

However, depot owners and the Dangote Refinery increased their ex-depot prices during this period, worsening the burden on consumers.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) blamed depot operators for the price surge and accused the refinery of refusing to load trucks despite full payments made weeks earlier.

As a result, filling stations across the country have raised their pump prices, with most outlets now selling petrol between ₦930 and ₦950 per litre.

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