Imported petrol costs N170 more than Dangote refinery price, MEMAN data shows

The estimated cost of importing petrol into Nigeria has climbed significantly above Dangote Petroleum Refinery's ex-depot price. The latest Energy Bulletin from the Major Energies Marketers Association of Nigeria (MEMAN) puts the import parity price of Premium Motor Spirit (PMS) at N1,365.19 per litre as of Monday, August 3.

That figure is N170.19 per litre higher than Dangote Refinery's current gantry price of N1,195 per litre. The gap means imported petrol remains substantially more expensive than locally refined supplies.

Why the gap is widening

MEMAN's import parity estimate reflects the projected cost of bringing petrol into Nigeria after accounting for international product prices, freight, financing, foreign exchange, regulatory charges and other logistics expenses. The latest figure is also well above the 30-day average import parity price of N1,124.65 per litre.

Higher global crude prices and exchange rate movements are driving the increase. The bulletin showed that Brent crude averaged $88.98 per barrel over the last seven days, while West Texas Intermediate (WTI) averaged $84.37 per barrel. Nigeria's Bonny Light crude traded even higher at $94.52 per barrel.

Despite rising global oil prices, Dangote Refinery has maintained its petrol ex-depot price at N1,195 per litre. Analysts say the wide price gap is expected to reduce the incentive for marketers to import petrol while strengthening Dangote's position in Nigeria's downstream petroleum market.

Depot prices across distribution hubs

MEMAN's bulletin also showed the latest ex-depot petrol prices across key fuel distribution hubs:

Lagos: N1,233 to N1,240 per litre. Warri: N1,215 to N1,258 per litre. Port Harcourt: N1,200 to N1,225 per litre. Calabar: N1,217 to N1,218 per litre.

For diesel (AGO), depot prices ranged as follows: Lagos: N1,650 to N1,700 per litre. Warri: N1,620 to N1,845 per litre. Port Harcourt: N1,570 to N1,700 per litre.

MEMAN estimated the import parity price of diesel at N1,674.20 per litre, while aviation fuel (ATK) was estimated at N1,600.37 per litre. Both are above their respective 30-day averages, underscoring continued pressure from global energy markets.

NNPC also cuts pump prices

Separately, the Nigerian National Petroleum Company (NNPC) Limited has reduced the pump price of petrol at its filling stations in Lagos and Abuja. NNPC outlets in Lagos are now selling petrol at below N1,300 per litre. In the Federal Capital Territory, Abuja, the state-owned oil company also reduced the pump price by N15 per litre, with petrol now selling at N1,335, compared to N1,350 previously.

For consumers and businesses, the widening gap between import costs and local refinery prices could keep downward pressure on pump prices, at least in areas well served by Dangote's supply network. But the continued rise in global crude prices means the cost of importing fuel remains a risk to any sustained relief at the pumps.