Imported Petrol Costs More Than Dangote Fuel as Price Gap Widens by N170
- MEMAN data shows the estimated import cost of petrol has risen far above Dangote Refinery's ex-depot price
- Higher global crude prices and foreign exchange costs continue to increase the landing cost of imported fuel
- The price gap strengthens the competitiveness of locally refined petrol and could discourage fresh fuel imports
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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 estimated cost of importing petrol into Nigeria has climbed significantly above Dangote Petroleum Refinery's ex-depot price, highlighting the growing cost advantage of locally refined fuel.
The latest Energy Bulletin released by the Major Energies Marketers Association of Nigeria (MEMAN) showed that the estimated import parity price of Premium Motor Spirit (PMS), also known as petrol, stood at N1,365.19 per litre as of Monday, August 3.
Source: Getty Images
The figure is N170.19 per litre higher than Dangote Refinery's current gantry price of N1,195 per litre, indicating that imported petrol remains substantially more expensive than locally refined supplies.
Imported petrol remains more expensive
MEMAN's import parity estimate represents the projected cost of importing petrol into Nigeria after accounting for international product prices, freight, financing, foreign exchange, regulatory charges and other logistics expenses.
The latest figure is also well above the 30-day average import parity price of N1,124.65 per litre, reflecting higher international fuel prices and the impact of exchange rate movements.
The bulletin showed that Brent crude averaged $88.98 per barrel over the last seven days, while West Texas Intermediate (WTI) averaged $84.37 per barrel. Nigeria's Bonny Light crude traded even higher at $94.52 per barrel.
Dangote refinery maintains price advantage
Despite rising global oil prices, Dangote Refinery has maintained its petrol ex-depot price at N1,195 per litre, making locally refined fuel significantly cheaper than imported supplies.
Analysts say the wide price gap is expected to reduce the incentive for marketers to import petrol while strengthening Dangote Refinery's position in Nigeria's downstream petroleum market.
Depot petrol prices across Nigeria
MEMAN's bulletin also showed the latest ex-depot petrol prices across key fuel distribution hubs:
- Lagos: N1,233 – N1,240 per litre
- Warri: N1,215 – N1,258 per litre
- Port Harcourt: N1,200 – N1,225 per litre
- Calabar: N1,217 – N1,218 per litre
Source: Getty Images
For diesel (AGO), depot prices ranged as follows:
- Lagos: N1,650 – N1,700 per litre
- Warri: N1,620 – N1,845 per litre
- Port Harcourt: N1,570 – N1,700 per litre
MEMAN estimated the import parity price of diesel at N1,674.20 per litre, while aviation fuel (ATK) was estimated at N1,600.37 per litre, both above their respective 30-day averages, underscoring continued pressure from global energy markets.
NNPC's new fuel price
Earlier, Legit.ng reported that the Nigerian National Petroleum Company (NNPC) Limited has reduced the pump price of petrol at its filling stations in Lagos and Abuja.
NNPC outlets in Lagos are now selling petrol at below N1,300 per litre in Lagos.
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 to N1,350 previously.
Source: Legit.ng
