By Capital Watch Media
Oil marketers have disclosed that the landing cost of Premium Motor Spirit, PMS, as of Friday, was N922.65 per litre, making imported petrol cheaper than the product supplied by the Dangote Petroleum Refinery.
This cost incorporates expenses like shipping, import duties, and exchange rates.
The landing cost has decreased by N32.35 compared to the refinery’s N955 per litre rate, making imports more attractive to marketers.
A major marketer, speaking anonymously, attributed this trend to the reduced cost of imported petrol, which encourages dealers to explore this option.
Last week, the Dangote Petroleum Refinery attributed the increase in petrol prices from N899.50 to higher crude oil costs, a key input for refined petroleum products.
However, despite the lower landing cost, the retail price of petrol remains high, with major marketers selling between N990 and N1,010 per litre in Abuja.
Data from the Major Oil Marketers Association of Nigeria revealed a reduction in on-spot import parity costs, dropping from N943.75 to N922.65 per litre on Friday.
The average cost of petrol rose to N939.52 per litre on Friday, up from N929.07 the previous day, while Brent crude dropped slightly to $78.29 per barrel, with an exchange rate of N1,550 to the dollar.
The lower landing cost offers importers an alternative route to profitability and potentially reduces ex-depot prices for independent marketers and private depot owners.
Ex-depot prices currently range between N950 and N990 per litre across Nigeria. However, exchange rate fluctuations and freight costs continue to influence market dynamics.
Marketers imported 76.84 million litres of petrol within two days last week, according to data from the Nigerian Ports Authority.
This shipment arrived at the Apapa and Tin Can ports in Lagos and was managed by Tera Shipping Limited and Peak Shipping Agency.
Meanwhile, industry stakeholders had previously agreed to halt imports for 180 days to allow the Dangote Refinery to demonstrate its production capacity.
The National President of the Petroleum Products Retail Outlets Owners Association, Billy Gillis-Harry, expressed surprise at the recent imports, citing the existing mutual agreement among industry stakeholders.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, clarified that the non-import directive was not binding but based on mutual understanding.
Marketers are currently focused on sourcing cheaper fuel, and Ukadike suggested that the Nigerian Midstream and Downstream Petroleum Regulatory Authority should issue licences for cheaper imports.
Depot prices also saw fluctuations last week. Bulk Strategic Depot in Port Harcourt reduced prices from N1,005 to N981 per litre.
Depots in Delta and Calabar maintained prices between N972 and N990 per litre.
With stakeholders divided over the resumption of imports, the market remains influenced by global crude prices, exchange rates, and supply chain dynamics.
