Relief Loading? Petrol Price Set To Fall As Import Landing Cost Dips Below Dangote Refinery Rate

The landing cost of imported Premium Motor Spirit (PMS), also known as petrol, has fallen to ₦839.97 per litre as of October 21, 2025 — dropping below the Dangote Refinery’s ex-depot price of ₦877 per litre.

According to the latest energy bulletin released by the Major Energy Marketers Association of Nigeria (MEMAN), the figure represents a slight decrease from ₦841.54 recorded on October 20, signalling rising competition in Nigeria’s fully deregulated downstream sector.

Confirming the development, the spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said the decline in landing cost was a direct reflection of market liberalisation, which allows players to source fuel from the most affordable suppliers.

“This is the outcome of deregulation. The market is now open, and competition is driving prices down. Marketers can now choose between buying at ₦877 per litre from Dangote or ₦839 per litre from importers,” Ukadike told Daily Post on Friday, October 24.

He noted that the price gap between imported and locally refined petrol was already shaping buying patterns, with many marketers opting for cheaper imports to cut retail prices and boost sales.

Further findings show that ex-depot prices for key importers — including Emedab, Gulf Treasure, Ardova, and Bono Energy — currently average around ₦875 per litre, while Dangote Refinery maintains its ₦877 benchmark.

Pump Prices Yet to Reflect Drop

Despite the decline in landing cost, retail pump prices remain largely unchanged. Checks on Friday revealed that major filling stations such as NNPC, MRS, Ranoil, TotalEnergies, and Emedab were still selling petrol between ₦950 and ₦965 per litre across Abuja.

Experts attribute the delay in price adjustments to logistics expenses, exchange rate fluctuations, and the presence of old stock purchased at higher prices. However, analysts believe that sustained competition between importers and the Dangote Refinery could trigger gradual reductions in pump prices nationwide.

The trend underscores the growing influence of market forces in Nigeria’s deregulated fuel market, where retail prices are shaped by global crude benchmarks, freight costs, foreign exchange rates, and local refining capacity.

Since beginning limited operations earlier in 2025, the Dangote Refinery has faced stiff competition from imported cargoes offered at lower prices by European and Middle Eastern suppliers.

While the refinery initially held a dominant position as Nigeria’s only large-scale producer, the influx of cheaper imported products has introduced what insiders describe as a “healthy price war” — one that may soon translate to relief for consumers at the pump.