Petrol import cost jumps N48 per litre in six days as crude, shipping rates rise
By Aboki Forex —
The landing cost of imported petrol climbed by nearly N48 per litre within six days, according to new data from the Major Energies Marketers Association of Nigeria (MEMAN). Higher Brent crude prices, a 25% surge in shipping rates, and a weaker naira drove the increase in import costs.
The cost of importing Premium Motor Spirit (PMS) into Nigeria has surged to N1,182.50 per litre. MEMAN's energy bulletins showed that the estimated import parity price moved from N1,134.72 per litre on July 9 to N1,182.50 per litre by July 15, a rise of N47.78 per litre in just six days. A secondary benchmark tracked by the association recorded a similar climb, from N1,135.73 to N1,183.50 per litre over the same period.
Crude prices and shipping costs drive the surge
MEMAN's data pointed to rebounding global crude prices as the primary factor behind the rising landing cost. The association's seven-day average placed Brent crude at $79.64 per barrel and West Texas Intermediate at $75.65 per barrel, up from $73.71 and $70.41 per barrel respectively the previous week.
Shipping costs added further pressure. Figures from S&P Global Commodity Insights showed freight rates for clean petroleum products moving from Northwest Europe to West Africa surged approximately 25%, from $29.70 per metric tonne at the end of June to $37.12 per metric tonne. The increase was attributed to tighter vessel availability after ships were diverted to alternative routes following renewed security concerns around the Strait of Hormuz.
Foreign exchange also played a role, with MEMAN's average exchange rate edging from N1,373.47 per dollar to N1,379.68 per dollar during the review period.
Depot prices rise across Lagos, Port Harcourt, Warri
The higher import costs have already worked their way through to wholesale prices. In Lagos, ex-depot prices for PMS rose to between N1,120.00 and N1,200.00 per litre by July 15, compared with a range of N1,072.00 to N1,075.50 per litre on July 9. Port Harcourt depots were pricing between N1,230.00 and N1,245.00 per litre, while Warri and Calabar hubs recorded prices of N1,200.00 to N1,230.00 per litre.
Industry analysts warned that wholesale prices could remain elevated in the weeks ahead if crude oil values and freight charges hold at current levels. The MEMAN report also noted that the downstream market continues to adjust to Dangote Petroleum Refinery's shift to dollar-denominated sales for petroleum products, a development that has reshaped how marketers calculate replacement costs.
Despite the rising depot prices across Nigeria, the country retained the lowest petrol retail price in West Africa.
What this means for consumers and the naira
The sustained increase in landing costs signals that retail pump prices may face upward pressure in the coming weeks. With the naira under strain and global crude prices holding above $79 per barrel, Nigerian consumers should expect higher costs at the pump. The shift to dollar-denominated sales by Dangote refinery also means that exchange rate movements will continue to directly impact petrol prices, leaving the naira's performance a key variable for household budgets and business operating costs.