The landing cost of Premium Motor Spirit, popularly known as petrol, has now risen to an average of N870 per litre, according to data from the Major Energies Marketers Association of Nigeria (MEMAN). This increase is coming at a time when the price from the Dangote Petroleum Refinery is already affecting the profit margins of fuel importers and marketers in the country.
Based on MEMAN’s records, the landing cost of petrol was N872 per litre on Sunday, April 28, and N868 on Monday, April 29. Just days earlier, on April 23, the average cost stood at N859 per litre. These figures now show that bringing in petrol from overseas costs more than buying it from the Dangote Refinery, which recently pegged its ex-depot price at N835 per litre.
The rising cost has left many fuel importers struggling to sell their products at prices that will allow them to break even, let alone make profits. According to petroleumprice.ng, Dangote sold petrol at N840 per litre on Thursday. Other players like Matrix in Lagos and Rainoil matched that price. But others like Pinnacle, Mao, Sahara, and AA Rano sold theirs at N889. Aiteo and Aipec were selling slightly lower at N838.
Meanwhile, some other depots listed different prices. First Fortune sold at N868, Sigmund at N875, Liquid Bulk at N870, and Matrix in Warri at N870. NIPCO in Lagos sold at N842. These prices show how location plays a key role in how much fuel buyers eventually pay. Prices in Lagos appear to be lower than in the South-South region, mostly due to transportation and logistics costs.
In a chat with our correspondent, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Mr. Billy Gillis-Harry, said the frequent changes in fuel prices have made business slow and unpredictable. He said the market is suffering because of irregular price adjustments that are not properly controlled.
“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 this, Gillis-Harry said PETROAN members remain committed to supplying fuel 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.
He also expressed hope that government efforts would eventually make the market better for both businesses and the general public.
In Ogun State, SGR filling stations in Sagamu and Mowe have reduced their pump price to N855 per litre. These stations, located along the Sagamu-Benin and Lagos-Ibadan Expressways, are selling at lower prices than many Dangote partners. MRS in Ogun was selling at N890, while Heyden sold at N885 as of Thursday.
It is important to note that the Dangote refinery has been reducing its petrol prices since the Federal Government started the naira-for-crude oil exchange deal with the refinery. This development, however, has not favoured fuel importers.
After the naira-for-crude deal was temporarily suspended in March and Dangote stopped selling fuel in naira, importers raised their pump prices to as high as N950 per litre. But once the Federal Government ordered the continuation of the deal, Dangote reduced its prices again, bringing it below N900 per litre.
Despite these efforts, a report by S&P Global said that Dangote’s price cuts are not deep enough to reflect the drop in global oil prices. According to the report, the refinery did not reduce its gantry price significantly even as international prices fell. For example, between April 1 and April 9, the Eurobob M1 swap fell by almost 18%, from $734.25 per metric tonne to $603. But Dangote only reduced its truck price by 1.7%, from N880 per litre to N865 and later to N835.
This slight reduction encouraged more international fuel traders to send products to Nigeria and other West African countries, where local prices remain relatively high.
