Cost of Imported Petrol Crashes Below Dangote's Price, Filling Station Owners Set To Make a Decision

• The cost of imported petrol in Nigeria has dropped below the prices offered by the Dangote Refinery
• The new price quoted means marketers will now have to decide whether to buy from the Dangote Refinery or continue importing
• Nigeria's current petroleum prices are determined by market forces, including crude oil prices and exchange rates

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Oil marketers have revealed that the ex-depot price of Premium Motor Spirit (PMS), commonly known as petrol, has dropped to N922.65 per litre as of Friday, January 24.

This was disclosed in the updates published by the Major Energies Marketers Association of Nigeria (MEMAN).

This reduction reflects various expenses, including shipping, import duties, and exchange rates.

The new imported prices now have a disparity of N32.35 from the N955 per litre price offered at the loading gantry of the Dangote Petroleum Refinery.

Read also

NNPC releases new petrol prices for Lagos, Abuja as Dangote refinery clarifies hike

Also, MEMAN revealed that the landing cost of Automotive Gas Oil (AGO)-Diesel has dropped to N1,045 per litre while aviation fuel is now N1,063.69 per litre.

This decrease in landing cost could influence the price at which petroleum products are sold to Nigerians and also give marketers another reason to look at importation.

Dangote petrol prices

Legit.ng reported that the Dangote Petroleum Refinery recently announced a 5% adjustment to its ex-depot price from N899.50 to N950 per litre and cited the rising cost of production due to an increase in the cost of crude oil, the major component for refined petroleum products.

Dangote refinery also instructed its distributing partners including Ardova, Heyden, and MRS Holdings filling stations to sell at their filling stations at N970 per litre.

Defending the decision, Dangote refinery said:

" If Dangote Refinery were to pass on the entire increase in the price of crude oil to the market, the retail price of PMS would be approximately N1,150 to N1,200 per litre in some locations, compared to the current price of N970 per litre."

Read also

Fuel prices hit N1,200 per litre, NNPC stations announces increase

Similarly, NNPC also raised the pump price of petrol by N25 per litre in Abuja and N35 per litre in Lagos at its retail outlets.

As of last week, petrol in Lagos and Abuja was sold within the range of N960 to N1,200 per litre to motorists.

Fuel prices set to change

Heineken Lokpobiri, the Minister of Petroleum Resources (Oil), recently stated that deregulation has fully taken effect in the sector and that global oil prices will now determine the cost of fuel. This means that fuel prices will fluctuate, just as they do globally.

However, Punch reports that the Petroleum Products Retail Outlets Owners Association of Nigeria mentioned there is an agreement among stakeholders against the importation of refined petroleum products.

Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, explained that this decision was simply a mutual understanding because, at the time, Dangote petrol was cheaper.

Read also

Filling stations sell petrol at new prices as Dangote confirms increase

He suggested that marketers might consider importing products, as it ultimately depends on where they can find cheaper products.

Transport companies adjust fares

Legit.ng also reported that the changes in fuel prices have forced transportation companies nationwide to adjust fares.

Travelling within a city is now 16.04% more than it was in the previous year.

The highest transportation fare by bus was recorded in Anambra, followed by Gombe, while the lowest fare was recorded in Kwara.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng