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UncategorizedMarketers Contemplate Dumpling Dangote Fuel As Imported Petrol Costs Less

Marketers Contemplate Dumpling Dangote Fuel As Imported Petrol Costs Less

27th January 2025

With landing cost of imported Premium Motor Spirit (petrol) at N922.65 per litre as at Friday compared to the N955 per litre offered at the loading gantry of the Dangote Petroleum Refinery, Oil marketers are considering their options.

Dealers said amount is a considerable reduction of N32.35 despite the cost factors in various expenses including shipping, import duties, and exchange rates.

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.

A major marketer, who spoke in the condition of anonymity said, “The lower cost of imported petrol is often an incentive to dealers and you won’t blame marketers who import the product,”

Dangote Petroleum Refinery, had last Sunday, the 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.

Currently, the 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.

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, despite the N32.35 price reduction

According to the latest competency centre daily energy data released by the Major Energies Marketers Association of Nigeria on Friday and obtained on Sunday, 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.

READ MORE;Dangote Refinery Increases Petrol Price To N955/Litre

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.

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