The landing cost of imported petrol has once again dropped below the price of fuel produced by the Dangote Refinery, despite the refinery benefiting from the Federal Government’s naira-for-crude arrangement.
Data released by the Major Energies Marketers Association of Nigeria (MEMAN) on March 2 showed that the landing cost of imported petrol stood at N809.83 per liter, even amid ongoing tensions in the Middle East.
In contrast, the gantry price of petrol at Dangote Refinery rose to N874 per liter after the 650,000-barrel-per-day facility increased its price by N100 earlier in the week, citing a rise in crude oil prices linked to the Middle East conflict.
The figures indicate that imported petrol is currently N64.2 per liter cheaper than fuel supplied by the refinery.
The latest increase by Dangote Refinery has also pushed up retail pump prices across parts of the country. Filling stations in Abuja and neighboring states such as Nasarawa State, Kogi State, and Niger State now sell petrol between N960 and N980 per liter, up from the previous range of N855 to N899.
More notably, filling stations operated by MRS Oil Nigeria Plc, which distribute Dangote-supplied fuel, are selling petrol at N975 per liter. This is N15 higher than prices at outlets run by the Nigerian National Petroleum Company Limited (NNPCL), AA Rano Nigeria Limited, and Ranoil Nigeria Limited, where petrol currently sells for around N960 per liter.
The situation highlights an ongoing price war in Nigeria’s downstream oil sector, with consumers bearing the impact of fluctuating fuel prices.
Commenting on the development, MEMAN said, “The market is currently on high uncertainty.”
In a statement on Thursday, Dangote Refinery attributed its latest ex-depot price increase to rising global crude oil prices.
“The refinery implemented a measured adjustment of N100 per liter in its ex-depot price of Premium Motor Spirit, representing an increase of about 12 percent. The refinery has absorbed 20 percent of the cost escalation, for now, to cushion the domestic market,” the company stated.
The refinery also confirmed that it participates in the government’s naira-for-crude policy but said the supply it receives under the arrangement is limited.
According to the company, the Nigerian National Petroleum Company Limited supplies about five cargoes of crude oil monthly under the naira-denominated arrangement, while the refinery requires roughly 13 cargoes each month to meet its production needs.
“Furthermore, while we receive about five cargoes a month from NNPC, which we pay for in Naira, these cargoes are priced at international market prices plus a premium and fall short of the 13 cargoes that we require to support sales into Nigeria,” the refinery said.
Industry stakeholders have continued to raise concerns over the persistent impact of global crude oil volatility on domestic fuel prices despite the naira-for-crude policy introduced in 2024.
Recently, activist lawyer Deji Adeyanju also expressed concern over the development.
As of the time of filing this report, Brent crude was trading at $85.12 per barrel, while West Texas Intermediate stood at $80.54 per barrel.
Earlier in February, imported petrol was about N77 per liter cheaper than Dangote-supplied fuel at a time when global crude prices were relatively stable.
