Marketers Warn: Petrol May Reach ₦800/Litre As Import Costs Decrease

This shift follows reports that the landing cost of imported Premium Motor Spirit (PMS) has dropped to ₦774.72 per litre, a reduction that could lead to pump prices falling to around ₦800 per litre in the coming weeks. Dealers indicated that the ₦774.72 per litre landing cost, which includes shipping, import duties, and exchange rate fluctuations, is ₦50.28 lower than the ₦825 per litre ex-gantry price at Dangote Petroleum Refinery.

This price advantage has prompted both independent and major marketers to abandon Dangote’s product in favor of imported fuel, ramping up competition in the sector.

In a statement to Punch, Ukadike Chinedu, the National Publicity Secretary of the Independent Marketers Association of Nigeria, predicted that a further reduction in crude oil prices could drive PMS pump prices down to ₦800 per litre.

NNPC and Dangote Refinery Slash Prices Amid Rising Competition

Last Monday, the Nigerian National Petroleum Corporation (NNPC) lowered its retail petrol prices to ₦860 and ₦880 per litre, down from ₦945 and ₦965 per litre in Lagos and Abuja, respectively.

NNPC’s price cut followed a similar move by Dangote Refinery, which reduced its ex-depot petrol price from ₦890 to ₦825 per litre, marking its third price reduction in two months.

Despite these adjustments, private marketers have seized the opportunity presented by falling import costs to offer even lower prices, intensifying market competition for the refinery.

Private Depots Undercut Refinery’s Price

According to findings by The PUNCH, private depots are now offering petrol at lower rates than marketers lifting directly from Dangote Refinery.

An analysis of depot pricing revealed: