Price of Imported Petrol Rises by N88 Per Litre as Dangote Exports Fuel to US
- Major Energies Marketers released data showing that the cost of importing one liter of fuel has increased by ₦88 from a week ago
- They admitted that the landing cost had gone up, but said that in a deregulated market, pricing changes are inevitable
- Last week, the price was N797 per litre; this week, it is N885 per litre, an increase of N88 per litre
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Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
A litre of imported fuel now costs N88 more to land than it did a week ago, data released by the Major Energies Marketers Association of Nigeria (MOMAN) on Wednesday has shown.
Source: Getty Images
In its daily energy report published on Wednesday, the organization acknowledged the increase in the landing cost, stating that price adjustments are unavoidable in a market that is deregulated.
This week's price increased from N797 per litre last week to N885 per liter. This means the price of each liter of petrol imported into the nation has increased by N88.
Customers that purchase Dangote gasoline via MRS and other partners pay N860, which is N25 less than the new landing cost.
Likewise, the ex-depot price of gasoline at the Dangote refinery is N815 per liter, which is N70 less than the current landing cost.
Fuel price declines
Due to price reductions by the Dangote refinery, the average price of petrol at the pump dropped to N860 a liter in recent weeks from roughly N1,000 in January.
The refinery was forced to lower its price after the landing cost dropped from almost N927 below Dangote's ex-depot price.
Because they were forced to sell petrol below their costs, marketers lost billions of naira as a result of the occurrence.
Product importation has also increased
Seven ships carrying imported Premium Motor Spirit were scheduled to dock at seaports throughout the country's borders between March 17 and 23, per a document obtained from the Nigerian Port Authority.
In order to enhance the nation's fuel supplies, these ships were to import goods through three seaports, carrying 115,000 metric tons, or 154.22 million liters of PMS.
According to an examination of the NPA document, the items arrived at the ports of Calabar in Cross River State, Tincan in Lagos, and Lekki Deep Seaport in Lagos.
In the same time frame, the Dangote Refinery imported 654,766 metric tonnes of crude oil, according to the paper.
Source: Getty Images
In a statement, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria, Olufemi Adewole, said,
“The naira-for-crude oil transaction framework presents significant risks that could affect Nigeria’s foreign exchange stability and deter foreign direct investment.”
Adewole expressed worries about the naira's volatility while pointing out that because of its stability and international acceptability, crude oil transactions are typically conducted in US dollar, Channels reported.
Dangote refinery exports fuel to US
Legit.ng reported that the Dangote refinery has exported 1.7 million barrels of jet fuel to the United States.
According to ship-tracking service Kpler, this shipment arrived at the United States ports on Monday.
Further data from Kpler indicates that another vessel, the Hafnia Andromeda, is scheduled to dock at the Everglades terminal by March 29, carrying approximately 348,000 barrels of jet fuel.
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Source: Legit.ng
