Petrol Landing Cost Drops Below N800 per Litre, Pump Prices Still Above N900

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Fresh data from Nigeria’s downstream oil sector shows a sharp decline in the landing cost of imported petrol. The cost has fallen below N800 per litre in recent weeks. This drop comes despite a slight fall in global crude oil prices and improved foreign exchange stability.

According to the Major Energies Marketers Association of Nigeria (MEMAN), landing costs now range between N1,300 and below N800 per litre. This is a significant reduction from previous months when costs exceeded N900 per litre.

However, millions of Nigerians have not felt the impact at the pump. Petrol prices still hover above N900 per litre in Lagos, Abuja, and other parts of the country. In some locations, prices exceed N1,000 per litre.

Why pump prices remain high

Industry analysts say the gap between landing costs and retail prices is driven by logistics expenses, transportation charges, depot margins, and storage costs. Marketers also point to exchange rate fluctuations and supply chain uncertainties as reasons for maintaining current prices.

Motorists and businesses hoping for immediate relief may have to wait longer. The lower import costs have not yet translated into cheaper fuel at filling stations.

Dangote Refinery renews legal battle

The decline in petrol import costs comes as the 650,000-barrel-per-day Dangote Refinery continues to adjust its ex-depot prices. The refinery has repeatedly changed its gantry prices in response to international market conditions and competition from imported products.

Industry observers say the refinery’s pricing decisions are now closely tied to movements in imported fuel costs. Marketers compare local supply prices with imported alternatives before making purchasing decisions.

The development also coincides with a renewed legal battle. Dangote Refinery has opposed the continued issuance of import licences for petrol and other refined products. The refinery argues that local refining capacity should be prioritised where sufficient domestic supply exists.

Stakeholders are divided. Supporters of the refinery say reducing imports would strengthen Nigeria’s energy security, conserve foreign exchange, and support local investments. Others insist that maintaining imports encourages competition and prevents supply shortages.

What happens next

With imported petrol landing costs now falling below N800 per litre, pressure is mounting on marketers and retailers to review pump prices. Whether Nigerians eventually benefit will depend on crude oil trends, exchange rate stability, distribution costs, and the outcome of competition between imported fuel suppliers and local refiners.

For now, motorists are watching closely as the battle between cheaper imports and local refining shapes the next chapter of Nigeria’s fuel market.

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