Oil marketers have disclosed a significant reduction in the landing cost of Premium Motor Spirit (PMS), which now stands at ₦922.65 per litre as of Friday, January 24, 2025. This marks a decrease of ₦32.35 compared to the ₦955 per litre offered at the loading gantry of the Dangote Petroleum Refinery.
The lower cost has prompted renewed interest among marketers in importing petrol, as it presents a more cost-effective alternative. “This reduction is often an incentive for dealers, and you can’t fault marketers who choose to import the product,” a source from the industry commented anonymously.
Recent Import Activity
Data from the Nigerian Port Authority reveals that 76.84 million litres of petrol were imported between January 21 and January 22, 2025. Two vessels, managed by Tera Shipping Limited and Peak Shipping Agency Nigeria Limited, berthed at Apapa and Tincan ports in Lagos, carrying 20,400 metric tonnes and 36,901 metric tonnes of petrol, respectively.
This development comes amidst a “mutual understanding” among industry stakeholders to prioritize domestic production. However, independent marketers argue that importing at a cheaper rate aligns with the market’s current dynamics.
Dangote Refinery Pricing and Market Adjustments
The Dangote Petroleum Refinery recently increased its petrol price to ₦955 per litre, citing rising crude oil costs. However, the new landing cost of imported petrol offers an alternative for marketers looking to reduce expenses.
Retail prices, meanwhile, remain high, with major marketers selling petrol at prices ranging from ₦990 to ₦1,010 per litre in the Federal Capital Territory. Depot prices have also shown mixed trends, with reductions observed at locations like Port Harcourt, Delta, and Calabar, where prices range between ₦960 and ₦990 per litre.
Industry Reactions
While some stakeholders question the timing of the importation amidst efforts to enhance domestic refining, others emphasize the need for competitive pricing. According to the Independent Petroleum Marketers Association of Nigeria, the non-import directive was not legally binding but rather a mutual understanding to allow the Dangote Refinery time to prove its production capacity.
As the energy market continues to evolve, the ongoing competition between domestic refining and importation underscores the need for stable policies that balance affordability with local production goals.