Imported petrol now costs more than Dangote fuel, industry data shows
By Aboki Forex —
The landed cost of imported petrol has climbed above the price of Dangote refinery's product, strengthening arguments for Nigeria to stop fuel imports and rely on local refining. According to the latest Energy Bulletin from the Major Energies Marketers Association of Nigeria, imported petrol cost N1,223.32 per litre as of July 29, higher than Dangote's gantry price of N1,215 per litre.
Imported fuel more expensive than Dangote supply
The bulletin showed that the spot landed cost of imported Premium Motor Spirit exceeded the price at which the 650,000-barrels-per-day Lekki-based refinery sells to marketers. Dangote's coastal price for petrol stood at N1,195 per litre, while its gantry price was N1,215 per litre, inclusive of Nigerian Midstream and Downstream Petroleum Regulatory Authority charges.
Brent crude averaged $90 per barrel during the review period, while the naira averaged N1,367.03 to the dollar. The elevated crude prices pushed up refined product costs internationally. Diesel traded on the Intercontinental Exchange in Europe averaged $1,246.54 per metric tonne, while the spot landed cost of diesel in Nigeria rose to N1,739.96 per litre against a 30-day average of N1,427.00. Aviation fuel climbed to N1,616.43 per litre from a 30-day average of N1,421.10.
Marketers renew calls to stop petrol imports
The Independent Petroleum Marketers Association of Nigeria has again urged the Federal Government to halt petrol importation. IPMAN National Publicity Secretary Chinedu Ukadike told The PUNCH that there was no justification for continued imports when local refineries, particularly Dangote, were producing enough to supply the domestic market. He argued that importing petrol when locally refined products were available put additional pressure on foreign exchange and undermined investments in domestic refining.
Ukadike also said recent import licences issued by the NMDPRA had failed to achieve their objective of moderating fuel prices. He noted that petrol imported under the new licences is being sold at rates significantly higher than Dangote's supply.
Depot prices shift across the country
Data from Petroleumprice.ng showed depot owners adjusting ex-depot prices on Thursday. AIPEC sold at N1,216 per litre. Ardova reduced its price by N1 to N1,217, while Ascon and T-Time each cut by N2 to N1,216. Emadeb increased its price by N1 to N1,218, and NIPCO retained N1,217.
In Port Harcourt, Aradel raised its price by N5 to N1,240. Matrix and Sigmund reduced prices by N10 each to N1,225 and N1,224 respectively, while T.S.L. cut by N15 to N1,225. In Calabar, Hong Petroleum, Mainland and Sobaz each reduced depot prices by N5 to N1,220. In Warri, A.Y.M. Shafa increased its price by N3 to N1,233, Optima by N2 to N1,232, while Matrix cut by N3 to N1,230 and Rainoil by N2 to N1,240.
Pump prices currently hover around N1,250 to N1,300 per litre in Lagos and Ogun states, with higher prices in the North and other distant locations. The pricing trend suggests local refining offers marketers a cheaper alternative, and continued imports may keep the naira under pressure while delaying much-needed price stability in the downstream sector.