Dangote Refinery's New Petrol Price N53 Lower than Imported Petrol
- MEMAN's latest Energy Bulletin put the spot landing cost of imported petrol at N1,218.54 per litre as of August 13
- Dangote Refinery's gantry price of N1,165 per litre sits N53.54 below what it costs to import the same product
- The price gap also extends to diesel, where Dangote's AGO price undercuts the import-parity estimate
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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 bringing petrol into Nigeria from abroad has climbed above what Dangote Petroleum Refinery charges for the same product, according to new industry data that points to a widening price advantage for locally refined fuel.
Figures published in the Major Energies Marketers Association of Nigeria (MEMAN)'s latest Energy Bulletin showed that the spot landing cost of Premium Motor Spirit (PMS) reached N1,218.54 per litre as of August 13.
Source: Getty Images
That figure represents what importers would pay after factoring in international refined-product prices, freight, financing, foreign exchange, port charges and other associated costs.
Why Import Costs Are Climbing
Global crude prices are a key driver. MEMAN's seven-day averages recorded Brent crude at $85.45 per barrel and West Texas Intermediate (WTI) at $79.95 per barrel. Nigeria's own Bonny Light crude traded at an average of $93.86 per barrel over the same period.
The naira exchange rate used in the assessment stood at N1,362.53 per dollar, adding further pressure to the cost of sourcing foreign-refined products.
Petroluemprice.ng reports that these combined factors continue to push up what importers and depot operators must spend to bring equivalent volumes into the country.
Dangote's Price Edge Over Imports
Dangote Refinery's current PMS gantry price is N1,165 per litre, roughly 4.6% or N80 below MEMAN's spot landing cost.
The refinery's coastal price is slightly lower at N1,145 per litre.
The N53.54 gap between the import cost and the refinery's gantry price gives local supply a clear commercial edge, and could lead marketers and depot operators to shift sourcing decisions away from imports.
The price difference in the diesel market is similarly pronounced.
MEMAN put the spot import-parity price of Automotive Gas Oil (AGO) at N1,649.52 per litre, while Dangote Refinery's AGO gantry price stands at N1,570 per litre, making locally refined diesel N79.52 cheaper per litre than the current import estimate.
MEMAN's own data on depot-level pricing in Lagos corroborates the figures. Ibachem, Ibeto, T-Time and PIVOT were all selling AGO at around N1,650 per litre, broadly matching the association's spot assessment.
Source: Getty Images
The Lagos ex-depot range for AGO ran between N1,625 and N1,850 per litre, while PMS ranged from N1,167 to N1,190 per litre.
Should international crude and refined-product prices remain at current levels, the cost advantage held by Dangote Refinery is likely to continue shaping how marketers source petrol and diesel in the months ahead.
NNPC's new fuel price
Earlier, Legit.ng reported that the Nigerian National Petroleum Company (NNPC) Limited had reduced the pump price of petrol at its filling stations in Lagos and Abuja.
NNPC outlets in Lagos are now selling petrol for below N1,300 per litre.
In the Federal Capital Territory (FCT), Abuja, the state-owned oil company also reduced the pump price by N15 per litre, with petrol now selling at N1,335, compared with N1,350 previously.
Source: Legit.ng
