The landing cost of petrol in Nigeria has now climbed beyond the Dangote Refinery’s selling price, putting pressure on fuel importers and marketers who say they are struggling to stay profitable.
Data from the Major Energies Marketers Association of Nigeria (MEMAN) indicates that the average landing cost of Premium Motor Spirit (PMS) rose to N872 per litre on April 28 and dropped slightly to N868 the next day.
Just days earlier, on April 23, it averaged N859 per litre—still higher than Dangote’s ex-depot rate of N835 per litre.
This growing difference is creating a tough situation for marketers, who are finding it harder to make profit from importing fuel. Several marketers are now forced to sell at or below cost to avoid major losses.
A price breakdown from petroleumprice.ng showed that Dangote Refinery sold petrol at N840 per litre on Thursday, the same rate offered by Matrix (Lagos) and Rainoil.
Other companies like Pinnacle, Mao, Sahara, and AA Rano offered higher prices of N889 per litre. Aiteo and Aipec sold at N838, while others like Sigmund and Liquid Bulk listed theirs at N875 and N870 respectively.
Prices also vary depending on the location. Depots in Lagos usually have lower prices, while stations in the South-South region report higher costs, mostly due to logistics challenges.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), noted that business has slowed down due to the inconsistent pricing.
“Business has been very slow, with the up and down price of PMS from arbitrary changes that are not effectively managed by the market forces,” he said.
Despite these issues, he said PETROAN remains committed to making fuel available to Nigerians.
“Regardless of how things are, we have to do business and keep Nigeria’s economy growing. That’s our covenant with Nigeria. That’s PETROAN’s covenant,” he added.
Meanwhile, SGR filling stations around Sagamu and Mowe in Ogun State have lowered their prices to N855 per litre—less than the rates from Dangote’s partners. In the same state, MRS and Heyden were selling at N890 and N885 per litre respectively.
The price cuts by Dangote come after the Federal Government resumed its naira-for-crude exchange program with the refinery, prompting Dangote to reduce its rates below N900.
Importers, however, have raised concerns. Several marketers told The PUNCH that they have had to lower their selling prices even when it means losing money, just to stay in business.
A recent report by S&P Global also noted that Dangote’s pricing hasn’t dropped significantly in response to falling crude oil prices globally.
“Incentives to ship products to West Africa have also come from the pricing at Nigeria’s Dangote refinery… Dangote has not lowered gantry prices for truck volumes significantly,” the report said.
According to the report, while global crude prices dropped nearly 18% between April 1 and April 9, the Dangote refinery’s truck price only saw a minor reduction—from N880 to N835 per litre. This price gap has encouraged more imports into West Africa, where domestic prices remain relatively high.
