Dangote, NNPC to Crash Petrol Prices Again as Landing Cost Drops
- Petrol landing cost has crashed again to N797.83 per litre as of Monday, March 14, 2025
- The current landing cost has become cheaper than the price offered by Dangote Refinery and NNPC
- The development may lead to another downward price adjustments by Dangote and NNPC, the two biggest players in the downstream oil sector
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The landing cost of imported petrol dropped to N797 per litre on Monday, March 17, 2025, amid plans by petroleum product marketers to reduce petrol purchases from Dangote Refinery.
The price crash comes following the raging price war in the downstream petroleum industry between the mega Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPC).
Source: Getty Images
Dangote may adjust prices again
Legit.ng earlier reported that a new landing cost led the Lekki-based refinery to quietly implement another price slash from N825 per litre to N815.
The N10 price difference sparked another round of competition among private depot owners, forcing them to adjust prices downward to maintain market competition.
Experts have said the continued decline in petrol prices has caused massive losses for oil marketers and importers, who have lost an estimated N2.5 billion daily and N75 billion monthly.
“Petroleum product prices are susceptible to international politics. Right now, the renewed tension in the Middle East may cause another spike in crude oil prices, which may lead to a hike in petrol prices, Adeola Yusuf, Energy policy analyst said.
“So, the current landing cost reflects the crude oil prices as of last week. The dynamics may shift in the coming days,” he said.
Marketers run losses
Amid the growing losses, the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) has called for an intervention from industry regulators to mandate fuel price adjustments every six months.
The national vice chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, disclosed that while the price war between Dangote and NNPC has been beneficial to Nigerians, it has impacted negatively on marketers, causing uncertainties in the market.
The incessant price reductions have also forced marketers to adjust prices multiple times, leading them to reduce the volume of PMS purchases.
However, the latest competency centre data released by the Major Energies Marketers Association of Nigeria (MEMAN) shows that petrol importers paid N797.66 to import PMS into Nigeria.
According to the dealers, the N797.66 per litre on-spot estimated import parity into tanks is considered an N20.16 reduction from the N917.82 last week.
Market watchers are expecting another price adjustment from Dangote Refinery and NNPC.
Punch reports that the MEMAN document shows that on-the-spot sales at the NPSC-NOJ terminal crashed by 797.73 per litre on Friday, March 14, 2025, while the average cost for 30 days also reduced to N851.76 from N854.15 per litre.
According to the MEMAN document, Brent crude price was benchmarked at $70.58 per barrel, from $69.88 on Friday, March 14, 2025, with an exchange rate of N1,517.93 to a dollar.
Crude oil prices rise marginally
Marketers calculated the price based on 38,000 metric tonnes.
The data noted that international petroleum product pricing is experiencing volatility due to tensions in the Middle East, China’s market dynamics, seasonal variations, production status, and global interferences.
MEMAN noted that the exchange has stabilised relatively, with minimal fluctuations seen in recent times.
Source: Getty Images
Landing cost is likely to change several times in the day due to the elements.
“Savings can be achieved through negotiations, access to foreign exchange, and logistics efficiencies, e.g., eliminating STS where possible or receiving larger cargos,” MEMAN said.
Dangote Refinery counts losses after petrol price crash
Legit.ng earlier reported that the Dangote Refinery is projected to have lost about N32.5 billion due to the recent petrol price crash from the 500 million litres of PMS stock at the plant's gantry.
Before announcing the price slash, the chairman of the Dangote Group, Aliko Dangote, disclosed that the mega facility had over 500 million litres of petrol in stock.
The explanation came when the facility sold petrol at N890 per litre.
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Source: Legit.ng
