Fuel Importers Squeezed as Petrol Landing Cost Surpasses Dangote’s Price
The cost of importing Premium Motor Spirit (PMS), commonly known as petrol, has climbed to an average of N870 per litre, outpacing the price offered by Dangote Petroleum Refinery, according to new data from the Major Energies Marketers Association of Nigeria (MEMAN).
Reports show the landing cost stood at N872 on April 28 and N868 on April 29, putting financial pressure on fuel importers already struggling with fluctuating exchange rates and logistics costs. On April 23, it averaged N859 — still higher than Dangote’s ex-depot price of N835 per litre.
This margin shrinkage has made it increasingly difficult for independent importers to compete with Dangote and still turn a profit.
Market Prices Vary Across Regions
According to petroleumprice.ng, Dangote sold petrol at N840 per litre on Thursday, matching prices from Matrix (Lagos) and Rainoil. Other marketers charged higher: Pinnacle, Mao, Sahara, and AA Rano sold at N889, while Aiteo and Aipec offered N838.
First Fortune listed its price at N868, Sigmund at N875, Liquid Bulk and Matrix (Warri) at N870, and NIPCO Lagos at N842.
Prices are reportedly higher in the South-South region due to logistics, while depots in Lagos offered relatively cheaper rates.
PETROAN: Arbitrary Price Shifts Hurting Business
The President of Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, lamented the persistent market instability.
“Business has been very slow with the up and down price of PMS from arbitrary changes not effectively managed by market forces,” he told reporters.
Despite the challenges, he reiterated PETROAN’s commitment to ensuring energy availability for Nigerians.
“That’s our covenant with Nigeria,” he affirmed, adding, “the government is doing its best, and we believe conditions will eventually favor both consumers and marketers.”
SGR Sells Below Dangote in Ogun State
SGR filling stations around Sagamu and Mowe in Ogun State have dropped prices to N855, undercutting Dangote’s listed rate. However, MRS and Heyden stations in the same area were still selling PMS at N890 and N885, respectively, as of Thursday.
The Federal Government’s naira-for-crude policy, which resumed recently after a temporary suspension in March, has also influenced pricing. While Dangote slashed rates below N900, marketers say the cuts are undercutting their cost-recovery margins.
Global Perspective: Why Imports Are Still Attractive
A report from S&P Global highlighted that despite the Dangote refinery’s domestic output, international imports remain incentivized due to global pricing trends.
“Dangote has not lowered gantry prices significantly despite falling crude prices,” the report stated. Between April 1 and April 9, while global Eurobob M1 swaps fell nearly 18%, Dangote only reduced truck gantry prices by 1.7%.
This pricing gap has led to a surge in fuel imports into West Africa, as importers seek profit opportunities in Nigeria’s high-price market.
