Cost of Imported Fuel Rises as Landing Cost Increases After Dangote Slashed Petrol Prices
- The landing cost of imported petrol has risen slightly to about N977 per litre due to the exchange rate volatility
- Data from the Major Energy Marketers Association of Nigeria (MEMAN) shows that marketers imported petrol at the exchange rate of N1,672 per dollar
- Findings show that the current landing cost is slightly higher than the price agreed between IPMAN and the Dangote Refinery
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The landing cost of petrol in Nigeria has risen marginally to about N977 per litre.
The figure is based on data from the Major Energy Marketers Association of Nigeria (MEMAN).
Source: UGC
MEMAN reveals exchange rate for imported fuel
The MEMAN data pegs the exchange rate for imported petrol at N1,672, increasing the 30-day average landing cost from N976.73 per litre to the current figure.
According to a BusinessDay report, the spot landing cost now stands at N952.69 per litre, showing changes due to exchange rate volatility.
The MEMAN’s data shows that the landing cost includes other components, such as finance charges applied at an annual rate of 32% over 30 days, freighting costs for 10 days and Nigerian Ports Authority (NPA) fees for mooring and towage.
Other fuels like diesel and aviation fuel remain steady, with diesel hitting N1,085 per litre and aviation fuel at N1,140 per litre.
Dangote’s petrol price is now cheaper
The marginal increase in landing cost shows the ongoing adjustments in Nigeria’s fuel import market.
Meanwhile, Legit.ng's findings show that the current landing cost is slightly higher than the price agreed between the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Dangote Refinery.
IPMAN disclosed that the association struck a deal with the mega refinery to lift petrol by truck at N9400 per litre and by ships at N990.
If marketers opt to truck their products, the price of petrol will crash nationwide.
IPMAN promises petrol price crash
IPMAN President Abubakar Maigandi disclosed in a television interview on Tuesday, November 12, 2024, that the petrol pump prices at its outlets will drop following the deal with the refinery.
The association reached a deal with the $20 billion refinery on Monday, November 11, 2024, to purchase petrol, diesel, and other petroleum products directly.
The agreement comes after months of negotiations following the exit of the Nigerian National Petroleum Company Limited (NNPC) as the sole off-taker of the refinery.
Petrol prices to crash by over N50
Maigandi explained that the Lekki-based facility had been obliged to let marketers buy petrol, diesel, and Kerosene to supply to their depots and retail outlets.
The IPMAN boss updated Nigerians on the pricing. The refinery gave marketers two rates based on preferences.
He said marketers can load at the gantry at N990 per litre or vial vessel transport at N940.
Punch reports that the new price is lower than the N960 and N990 per litre on ships and trucks offered by the refinery last week.
The IPMAN helmsman disclosed that the partnership aims to ensure a consistent and affordable supply of petrol and other products nationwide.
He stated further that petrol prices may crash by N50 or more, depending on the location.
Dangote refinery to export petrol after crashing prices
Legit.ng previously reported that the Dangote Refinery has agreed to export more than 200,000MT of its petrol, as local demand for more expensive, higher-quality products has disappointed many Nigerians.
An executive at the refinery disclosed this, saying that the mega refinery has signed its first export orders for its petrol and will begin dispatching the products immediately after the ships arrive.
The giant refinery has been touted as supplying Nigeria’s petrol demand and servicing about 340,000 barrels of local market, ending the country’s dependence on petrol imports.
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Source: Legit.ng
