Landing cost of imported Premium Motor Spirit, commonly called petrol, as of Friday was N922.65 per litre, oil marketers have revealed, indicating a lower cost than the loading price from the Dangote Petroleum Refinery.
According to dealers, this cost factors in various expenses including shipping, import duties, and exchange rates.
The amount is a considerable reduction of N32.35 from the N955 per litre offered at the loading gantry of the Dangote Petroleum Refinery.
This decrease in landing cost is expected to influence the price at which petrol is sold to consumers and could increase marketers’ interest in returning to petrol imports.
Recall that the Dangote Petroleum Refinery had last Sunday said the rise in petrol price from N899.50 was due to an increase in the cost of crude oil, the major component for refined petroleum products.
However, this latest decline in landing cost, which reflects the price of importing and distributing the product, signals some relief from the pressures of global market fluctuations and supply chain challenges.
Despite this reduction, however, the retail price of petrol in Nigeria has remained high, with major marketers continuing to sell refined products between N990 and N1,010 per litre in the Federal Capital Territory.
According to the latest competency centre daily energy data released by the Major Energies Marketers Association of Nigeria on Friday, the on-spot estimated import parity into tanks was N922.65 per litre, a reduction of N21 or 2.2 per cent from the N943.75 per litre quoted on Thursday.
The average cost for 30 days rose to N939.52 per litre on Friday, up from N929.07 per litre on Thursday, and N900.74 per litre on Tuesday.
The document also noted that the price of Brent crude was benchmarked at $78.29 per barrel, down from $78.88 per barrel the previous day, with an exchange rate of N1,550 per dollar.
This cost is viewed as an improvement for importers, providing private depot owners and independent marketers with an alternative route to profitability and the opportunity to source cheaper products.
With the average ex-depot price across all locations ranging from N950 to N990 per litre, importers stand a chance to cover costs significantly lower than recent historical averages and generate sustainable margins.
The updated landing costs and aligned ex-depot pricing indicate a more profitable environment for stakeholders in the downstream oil and gas sector. However, it also highlights the ongoing influence of exchange rate fluctuations and freight costs on Nigeria’s energy market.
Checks last week revealed petrol price movements at loading depots revealed that the loading cost of the commodity was reduced by N10.
But commenting on the development, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, said there is an agreement by stakeholders against the importation of refined petroleum products.
Gillis-Harry, in an interview on Sunday, said the Nigerian Midstream and Downstream Petroleum Regulatory Authority is supposed to stop the issuance of import licenses for 180 days to prove the production capacity of the Dangote refinery.
He said, “Well, is there anybody that has landed imported fuel?”
He disclosed to the Punch that, “we have an industry stakeholder forum that was Inaugurated last week, which will direct happenings in the industry. There was an industry agreement that there should be no import, and Dangote was given a certain number of days to produce a certain quantity daily for us.”
However, according to the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, the non-import directive was a “mutual understanding” and not a binding agreement.
“It was because, at the time, Dangote products were cheaper than imported ones.
“NMDPRA is supposed to give (licence to) anyone who can import at a cheaper rate. We all are looking at cheaper rates, and that is what is happening.” he told the Punch in an interview.