Oil marketers have announced that the landing cost of Premium Motor Spirit (petrol) stood at ₦922.65 per litre as of Friday.
- Landing cost of petrol in Nigeria has decreased to ₦922.65 per litre.
- Dangote Refinery faces challenges in matching the affordability of imported alternatives.
- Global crude oil prices are driving the recent increase in the price of Premium Motor Spirit (PMS).
Oil marketers have announced that the landing cost of Premium Motor Spirit (petrol) stood at ₦922.65 per litre as of Friday. This is a ₦32.35 decrease from the ₦955 per litre price at Dangote’s loading gantry.
According to dealers, this cost accounts for several components, including shipping fees, import duties, and exchange rate fluctuations.
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“The lower cost of imported petrol is often an incentive to dealers, and you won’t blame marketers who import the product,” a prominent marketer told Punch.
This shift comes despite the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) ‘s earlier advocacy for a 180-day suspension of fuel imports to promote local refining.
Business Insider Africa previously reported that Nigerian oil marketers are increasingly turning to the Dangote Refinery as depot fuel prices continue to rise.
However, the 650,000-barrel-per-day Dangote Refinery, once lauded for its competitive pricing, is now struggling to match the affordability of imported alternatives.
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Dangote Petroleum Refinery explained that the recent increase in the price of Premium Motor Spirit (PMS) was driven by the significant rise in global crude oil prices.
The company highlighted that, as crude oil is the main raw material for PMS production, changes in its international price directly influence the cost of the final product.
Marketers contend that there is no binding agreement requiring them to prioritize locally produced fuel over cheaper imports.
This shift highlights the persistent challenges in achieving self-sufficiency in fuel refining, as imported products dominate the market.
