Petrol Import Costs Drop Below Dangote Refinery Price as Gantry Rate Hits N799
- Imported petrol currently has a lower landing cost than Dangote refinery’s gantry price
- The refinery said earlier price cuts were temporary and linked to the festive season
- Stakeholders remain divided over market competition and pricing dynamics
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The landing cost of imported Premium Motor Spirit (PMS), also known as petrol, has fallen below the gantry price set by the Dangote Petroleum Refinery following a recent price adjustment by the facility.
According to data released by the Major Energies Marketers Association of Nigeria (MEMAN), the landing cost of imported petrol stood at N728.88 per litre as of last week.
Source: Getty Images
However, the Dangote Petroleum Refinery announced on Monday night that it had raised its PMS gantry price from N699 to N799 per litre, making locally refined petrol about 70 more expensive than imported products at the current rates.
Following the adjustment, the refinery said MRS filling stations would sell petrol at N839 per litre.
Checks by Legit.ng on Tuesday confirmed that MRS outlets had increased pump prices from 739 to 839 per litre in line with the new directive from the 650,000 barrels-per-day Lekki-based refinery.
Price reductions were temporary - Dangote Refinery
In a statement, the Dangote refinery explained that the price change was a modest realignment after the end of the festive season.
The company said earlier price reductions were temporary and aimed at easing financial pressure on Nigerians during the holidays.
The refinery noted that it had absorbed significant costs during the festive period to support affordability and market stability, adding that this was the second consecutive year it intervened during peak spending seasons.
“Despite the price reduction, many filling stations failed to reflect the new price at the pump. With the festive period concluded, PMS prices have been realigned to sustainable levels to support long-term market stability,” the refinery stated.
Dangote Petroleum Refinery also reaffirmed its commitment to uninterrupted nationwide supply, stressing that its operations continue to support Nigeria’s energy security.
Speaking on the development, the Chief Executive Officer of the refinery, David Bird, said the facility supplies about 50 million litres of PMS daily, with distribution running smoothly across the country.
He added that the refinery’s flexible design allows it to process various crude types, ensuring stable output even during maintenance periods.
Industry data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) previously showed that petrol imports declined from 52.1 million litres per day in November to 42.2 million litres per day in December, while Dangote refinery’s supply rose from 19.5 million to 32 million litres per day within the same period.
Sources within the Dangote Group told Legit.ng that the December price cut was strictly seasonal and that the latest move was a return to prevailing market realities.
Meanwhile, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said the earlier price reduction was aimed at increasing Dangote’s market share.
He warned that stakeholders should be allowed to compete on a level playing field to avoid market dominance.
Source: Getty Images
Dangote has repeatedly denied allegations of monopoly, maintaining that importing petrol while local refining capacity is available amounts to economic sabotage.
It remains unclear whether fuel importers will take advantage of the lower landing cost to sell petrol below Dangote’s current retail price.
Why Dangote hiked price
Legit.ng earlier reported that Dangote Refinery said the price hike reflects a return to what it described as “sustainable levels” after a temporary intervention aimed at easing pressure on Nigerians during the recent festive season.
The refinery also expressed concern that many filling stations did not reflect the reduced prices at the pump, denying Nigerians the intended benefits of the intervention.
The refinery reaffirmed its commitment to maintaining market stability and ensuring an uninterrupted nationwide supply of petrol.
Source: Legit.ng
