The landing cost of imported petrol has fallen to N797 per litre as oil marketers plan to cut fuel purchases to minimize losses.
The latest drop in petrol prices is unfolding amid an intense price war in Nigeria’s downstream oil sector. Dangote Refinery quietly adjusted its pricing strategy, lowering the loading cost of its petrol from N825 per litre to N815 per litre. This price reduction triggered a competitive response from private fuel depots, compelling them to slash their own prices in a bid to retain market share.
However, this ongoing price decline is taking a heavy toll on oil marketers and importers. With shrinking profit margins, industry players are reportedly facing losses of up to N2.5 billion daily amounting to a staggering N75 billion each month.
Oil marketers under the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have called for a regulatory framework that would mandate fuel price adjustments only every six months. However, it remains uncertain whether the regulatory authorities will approve this request.
The latest Competency Centre daily energy data reveals that petrol-importing marketers paid an average of N797.66 per litre to bring in petrol. According to the Major Energies Marketers Association of Nigeria, this figure represents the on-spot estimated import parity into tanks, factoring in key expenses such as shipping, import duties, and exchange rate fluctuations.
Industry dealers note that this N797.66 per litre landing cost marks a reduction of N20.16 compared to the previous N817.82 per litre, offering slight relief in the face of the sector’s ongoing price fluctuations. It remains to be seen whether this development will trigger a pricing disruption between the Nigerian National Petroleum Company, the Dangote Refinery, and private depot owners.
