Oil marketers in Nigeria are re-evaluating their supply chains as the landing cost of imported Premium Motor Spirit (PMS) dropped to N922.65 per litre, presenting a significant N32.35 cost advantage over the N955 per litre offered at the Dangote Petroleum Refinery.
This new pricing dynamic has sparked discussions within the downstream sector, as stakeholders consider returning to imports to maximize profitability. A senior marketer, who spoke anonymously, explained, “The lower cost of imported petrol is an incentive to dealers. It’s hard to fault marketers who prioritize cost efficiency.”
The Dangote Petroleum Refinery had previously attributed its price adjustment from N899.50 to N955 per litre to rising crude oil costs. However, the recent dip in the landing cost of imported petrol is attributed to fluctuations in the global crude oil market, exchange rate stability, and reduced freight expenses.
Data obtained from the Major Energies Marketers Association of Nigeria showed that the average landing cost dropped by N21 (2.2%) to N922.65 per litre on Friday. Despite this, retail prices remain high, with major marketers selling petrol between N990 and N1,010 per litre in the Federal Capital Territory.
Further analysis revealed that while the 30-day average cost increased slightly to N939.52 per litre, the cost still provides importers a viable alternative to local supplies.
Depot pricing trends also highlight market volatility. Nipco reduced its price to N970 per litre, while other players, including Sahara, Wosbab, and AA Rano, settled at N960 per litre by the week’s close. Bulk Strategic Depot in Port Harcourt showed the most significant price cut, dropping from N1,005 to N981 per litre.
Between January 21 and 22, oil marketers imported 76.84 million litres of petrol, facilitated by Tera Shipping Limited and Peak Shipping Agency Nigeria Limited.
The Nigerian Ports Authority confirmed the arrival of vessels carrying 57,301 metric tonnes of petrol at Apapa and Tincan ports in Lagos.
The influx of imported petrol has reignited debate over an earlier “non-import” understanding aimed at giving the Dangote refinery time to stabilize operations. Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, expressed surprise at the continued imports, citing a supposed 180-day agreement to prioritize Dangote’s supply.
Conversely, Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, clarified that the understanding was non-binding.
“It was mutual, not a formal agreement. Marketers are now looking at cheaper options, and imported petrol meets that need,” he explained.
