Oil marketers have reported a reduction in the landing cost of Premium Motor Spirit (PMS), now pegged at N922.65 per litre as of Friday. This figure is significantly lower than the N955 per litre offered at the Dangote Petroleum Refinery, sparking interest among marketers to return to petrol imports.
A major oil marketer, who spoke anonymously due to a lack of authorization, remarked, “The lower cost of imported petrol is often an incentive to dealers, and you won’t blame marketers who import the product.”
Price Dynamics and Market Trends
The decrease in the landing cost is attributed to declining global crude oil prices and adjustments in shipping and import duties. For context, Brent crude oil traded at $78.29 per barrel on Friday, down from $78.88 per barrel the previous day, with the exchange rate at N1,550 per dollar.
Despite the reduction in landing costs, retail petrol prices remain high in Nigeria, with major marketers selling between N990 and N1,010 per litre in the Federal Capital Territory. Notably, depot prices have also seen slight adjustments. For example:
Nipco closed at N970 per litre.
Aiteo reduced prices from N980 to N960 per litre.
Depots in Port Harcourt dropped from N1,005 to N981 per litre.
Import Surge: 76.84 Million Litres in Two Days
Between January 21 and 22, 2025, oil marketers imported 57,301 metric tonnes of PMS, translating to approximately 76.84 million litres. Data from the Nigerian Ports Authority revealed that vessels berthed at Apapa and Tin Can ports in Lagos, handled by Tera Shipping Limited and Peak Shipping Agency Nigeria Limited.
This surge comes amid an existing agreement discouraging petrol imports to allow the Dangote refinery to prove its production capacity. The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, expressed surprise at the imports, stating, “The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had agreed on a 180-day moratorium on imports to test Dangote’s production capability. I am surprised to hear that fuel is being imported.”
Challenges and Opportunities
The updated landing costs offer private depot owners and independent marketers an opportunity to source cheaper products, ensuring profitability. However, industry players continue to face hurdles from fluctuating exchange rates, global market pressures, and regulatory uncertainties.
As Nigeria’s energy sector navigates these developments, stakeholders remain focused on balancing import reliance with local refining capacity, particularly at the Dangote Petroleum Refinery.
