The once-competitive pricing of Dangote Refinery’s products now faces challenges, as the cost of imported Premium Motor Spirit (PMS) drops significantly. The landing cost of imported petrol has decreased to ₦922.65 per litre, a ₦32.35 reduction compared to Dangote Refinery’s loading gantry price of ₦955 per litre. This price difference has led many oil marketers to shift towards importing cheaper petrol.
In just two days, industry data revealed that marketers imported 76.84 million litres of petrol, highlighting the growing preference for imported products over local refinery options. Despite the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)’s call for a 180-day suspension of fuel imports to boost local refining, the lower cost of imported petrol continues to attract marketers.
A prominent marketer noted, “The lower cost of imported petrol is an incentive for dealers, and marketers can’t be blamed for turning to cheaper imports,” according to Punch.
Impact on Consumers and Fuel Prices
As import costs decline, consumers may soon see a potential reduction in pump prices. However, depot prices remain high, ranging between ₦950 and ₦990 per litre, which could affect the final price at the pump.
Marketers argue that no agreement forces them to prioritize locally refined products, especially when imported fuel offers better margins and more competitive pricing. This shift highlights ongoing challenges in Nigeria’s quest for self-sufficiency in fuel refining, as imported fuel continues to dominate the market.
