Why petrol landing cost is falling below Dangote refinery price

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The cost of importing petrol has dropped sharply below the price of fuel from the Dangote Refinery, as global crude oil prices continue to decline. Industry data shows the landing cost of imported Premium Motor Spirit (PMS) is now around N1,075 per litre, roughly N60 cheaper than Dangote's ex-depot price.

The development follows weeks of falling crude oil prices after improved tanker movement through the Strait of Hormuz eased concerns over global supply disruptions. It has raised expectations of lower pump prices across Nigeria.

Global crude decline drives import costs lower

Global oil benchmarks have continued their downward trend after recent geopolitical tensions subsided. According to data from Oilprice.com, as of Friday, July 3, 2026, Brent crude traded slightly above $71 per barrel. West Texas Intermediate (WTI) fell to $68.60 per barrel, its lowest level since March. Mirban crude also dropped to $66.29 per barrel.

The decline has significantly reduced the cost of producing and importing refined petroleum products. Industry experts say the sustained drop in crude prices is helping to lower freight, insurance and refining costs, making imported fuel increasingly competitive.

Imported petrol now cheaper than Dangote supply

Latest figures released by the Major Energy Marketers Association of Nigeria (MEMAN) indicate that the landing cost of imported petrol has dropped to about N1,075 per litre. This makes it around N60 cheaper than the current ex-depot price of petrol from the Dangote Refinery.

The refinery had only recently reduced its petrol price by N50 per litre, citing changes in global market conditions and declining crude oil prices. The latest pricing suggests imported PMS now enjoys a cost advantage over locally refined supplies, a development that could intensify competition among fuel suppliers in the coming weeks.

Diesel and aviation fuel also see price drops

The reduction is not limited to petrol. MEMAN's latest weekly pricing bulletin shows that the landing cost of diesel has dropped to N1,224.60 per litre, compared with the average depot price of about N1,450 per litre. Similarly, aviation fuel now has a landing cost of approximately N1,221 per litre, significantly below the average depot price of N1,400 per litre.

The lower import costs reflect the broader decline in international energy prices and improving supply conditions in the global oil market.

What this means for Nigerian consumers

Energy analysts believe motorists could see additional relief if crude oil prices continue their current downward trajectory. According to industry experts, petrol prices could fall below N1,000 per litre in the coming weeks should global crude prices remain stable or decline further. With both imported and locally refined products becoming cheaper, Nigerians are expected to closely watch how marketers adjust pump prices nationwide in response to the changing market dynamics.

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