Overview of Market Trends
Oil marketers in Nigeria have revealed that the landing cost of Premium Motor Spirit (PMS) dropped to N922.65 per litre as of Friday, marking a reduction of N32.35 from the earlier cost of N955 per litre at the Dangote Petroleum Refinery.
This decline in landing cost, which factors in expenses such as shipping, import duties, and exchange rates, is expected to influence retail pricing and potentially reinvigorate marketers’ interest in importing fuel.
Market Adjustments and Retail Prices
Despite the reduction, petrol prices at retail outlets remain high. Marketers in the Federal Capital Territory continue to sell the product between N990 and N1,010 per litre, reflecting ongoing market volatility and challenges such as exchange rate fluctuations and freight costs.
Depot Price Reductions
Analysis of depot prices across key locations showed reductions during the week:
- Nipco: N970 per litre, down from N965.
- Aiteo: N960, reduced from N980.
- Sahara: Closed at N960, a reduction of N20.
- Swift: Opened at N970 and closed at N960.
- Wosbab and AA Rano: Maintained N960 per litre.
In Port Harcourt, Bulk Strategic Depot dropped its price from N1,005 to N981, a reduction of N24. Depots in Delta and Calabar maintained prices ranging between N972 and N990 per litre.
Importation Resumes Despite Dangote Refinery’s Mandate
Data from the Nigerian Ports Authority revealed that marketers imported 57,301 metric tonnes of fuel between January 21 and 22, 2025, translating to approximately 76.84 million litres of petrol.
The shipments, handled by Tera Shipping Limited and Peak Shipping Agency Nigeria Limited, berthed at Lagos’ Apapa and Tincan ports. Meanwhile, two undocumented vessels berthed at the Dangote terminal in Lekki.
Conflicting Perspectives on Importation
The resumption of fuel imports has raised questions among industry stakeholders. The National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, expressed surprise, stating that there was an informal understanding to halt imports for 180 days to allow the Dangote Refinery to prove its production capacity.
“I’m surprised to hear that anyone is importing fuel. The agreement was to let Dangote meet its daily production target during this period,” Gillis-Harry said.
However, Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, countered this claim, describing the directive as a “mutual understanding” rather than a binding agreement.
“There was no formal agreement; it was just a mutual understanding. If marketers find cheaper options through importation, they are free to pursue them,” Ukadike explained.
Global Market Influences
The document also indicated that the price of Brent crude dropped slightly to $78.29 per barrel, with an exchange rate of N1,550 per dollar, reflecting the impact of global market dynamics on local fuel pricing.
Stakeholders Navigate New Realities
The reduction in landing costs and the resumption of imports provide an opportunity for independent marketers and depot owners to source cheaper products and achieve better profit margins. However, the ongoing high retail prices underscore the complexities of Nigeria’s downstream oil sector, influenced by supply chain challenges, exchange rate fluctuations, and market agreements.
As the government and stakeholders navigate these dynamics, balancing cost efficiency, consumer affordability, and local production capacity remains a priority.
