Petrol Landing Cost Rises, N57 Higher Than Dangote Refinery’s Price

• The landing cost of petrol has increased, adding more pressure to marketers who choose to import rather than buy locally
• New data shows that in the last 30 days, the cost of petrol from abroad has increased by N47 compared to Dangote's price
• Filling station owners will now have to decide whether to buy from depots or the Dangote refinery

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The average cost of importing Premium Motor Spirit (PMS), commonly known as petrol, has increased as international crude oil prices gradually pick up.

According to newly released industry data, the average landing cost of imported PMS has climbed to N882.87 per litre in May.

This is an increase from N843.52 per litre quoted in the same period of April.

The latest price of imported petrol is also N57 per litre more expensive than the average wholesale price from the Dangote Petroleum Refinery.

Dangote Refinery is offering petrol to marketers loading from the gantry at N825 per litre.

While the refinery’s publicly announced ex-depot price remains at N835 per litre, Punch reports that the refinery refunds customers N10.

A source familiar with the arrangement told reporters:

“Marketers are receiving a rebate after purchase, which allows them to remain competitive on pricing at their retail outlets.”

Filling station owners need to make a decision

The huge disparity between cost of landing petrol and Dangote's price offered places a renewed pressure on filling station owners who must now weigh their options between buying imported fuel or sourcing from the Dangote refinery.

With Dangote’s 650,000-barrels-per-day refinery now fully operational and offering relatively cheaper fuel, downstream players will now have to make a decision.

Choosing Dangote’s local supply could mean better margins and stable pricing, while imports continue to expose them to foreign exchange fluctuations and global market shifts.

Here is a snapshot of ex-depot prices offered, based on data from Petroleumprice.ng on Tuesday, May 13.

• Fynefield: N905
• Mainland: N905
• Sigmund: N895
• Liquid Bulk: N896
• Ever: N896
• Matrix Warri: N890
• A.Y.M Shafa: N890
• First Fortune: N885
• Alkanes: N870
• Rainoil Lagos: N870
• Pinnacle Warri: N854
• Rainoil Delta: N854
• Prudent Oghara: N850
• Zamson: N849
• Menj: N837
• NIPCO Lagos: N837
• A.A Rano: N837
• T.Time: N837
• Sahara: N837
• AIPEC: N837
• Matrix Lagos: N836
• Eterna: N835
• Swift: N835
• Pinnacle: N828
• Dangote: N828
• MRS Tincan: N827

Dangote denies monopoly claims by importers

Earlier, Legit.ng reported that Dangote Refinery has denied claims by Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) that it is trying to monopolise the market.

DAPPMAN’s Executive Secretary, Olufemi Adewole, said the 650,000 bpd-capacity refinery cannot meet Nigerians' now reduced petrol consumption needs.

He argued that marketers have been importing fuel to sustain their operations.

The refinery’s officials disclosed that the facility has enough fuel to meet local demands and for export.

Source: Legit.ng