Marketers Announce New Petrol Prices, Dangote’s Rate Cheapest
- MEMAN data showed the landed cost of imported petrol has increased, exceeding Dangote Refinery's gantry price
- Higher Brent crude prices and a weaker naira drove up the cost of bringing refined fuel into Nigeria as of July 29
- IPMAN renewed its call for the federal government to stop issuing petrol import licences, citing the cost advantage of local refining
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The cost of importing petrol into Nigeria has risen above what the Dangote Petroleum Refinery charges for locally refined fuel, according to new figures from the Major Energies Marketers Association of Nigeria (MEMAN).
MEMAN's latest data, covering the period to July 29, put the spot landed cost of imported Premium Motor Spirit at N1,223.32 per litre.
Source: Getty Images
That figure exceeds the Dangote Refinery's gantry price of N1,215 per litre by N8.32, making imports the more expensive option for marketers sourcing petrol.
The Lekki-based refinery, which has a daily capacity of 650,000 barrels, also offered a coastal price of N1,195 per litre. The higher gantry price reflects charges applied by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
What Is Pushing Import Costs Up
MEMAN linked the increase to two key factors: firmer global oil prices and a weaker naira. Brent crude averaged $90 per barrel during the review period, while the naira exchanged at an average of N1,367.03 to the dollar, raising the cost of bringing in refined products.
The same pressures lifted prices across other imported petroleum products.
Diesel landed at N1,739.96 per litre, compared with a 30-day average of N1,427 per litre, while aviation fuel reached N1,616.43 per litre against a 30-day average of N1,421.10 per litre.
European diesel traded at an average of $1,246.54 per metric tonne on the international market.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) used the fresh data to push its case for a halt to petrol importation.
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Dangote breaks silence on fuel price hike, explains return to naira sales amid supply fears
The group argued that domestic refineries can now meet local demand and that continued import licences are straining Nigeria's foreign exchange reserves while putting local producers at a competitive disadvantage, Punch reports.
IPMAN's position is that sourcing fuel from domestic refineries is not only now more cost-effective but also essential to stabilising the downstream sector over the long term.
Marketers release new petrol prices
At the depot level, ex-depot prices shifted in different directions across major hubs. In Lagos, AIPEC sold petrol at N1,216 per litre, while Ardova and several others priced at between N1,216 and N1,218 per litre.
Source: Getty Images
In Port Harcourt, Aradel raised its depot price to N1,240 per litre, while Matrix, Sigmund and T.S.L. cut theirs to between N1,224 and N1,225 per litre.
Calabar recorded price reductions, while Warri depots posted mixed movements, according to data from Petroleumprice.ng.
At the pump, retail prices in Lagos and Ogun states currently average between N1,250 and N1,300 per litre, with northern and inland markets paying more due to the added cost of transporting fuel from supply hubs.
NNPC increases petrol price by N182, releases new rates
Earlier, Legit.ng reported that the Nigerian National Petroleum Company (NNPC) Limited has pushed up the pump price of petrol at its filling stations in Lagos and Abuja, with the adjustments taking effect as uncertainty over fuel supply deepens across the country.
NNPC outlets in Lagos are now selling petrol at N1,300 per litre, up from N1,118, a jump of N182.
In Abuja, the price moved from N1,210 to N1,330 per litre, representing a rise of N120.
Source: Legit.ng
