Petrol Landing Cost Falls to ₦840/Litre, But Pump Prices Stay High

The landing cost of imported Premium Motor Spirit (PMS), also known as petrol, has slightly declined from ₦849.61 to ₦839.97 per litre, according to data from the Major Energies Marketers Association of Nigeria (MEMAN).

MEMAN’s energy reports show that petrol landed at ₦849.61 per litre on October 13, ₦847.61 on October 14, ₦841.54 on October 20, and ₦839.97 on October 21.

Despite this downward trend, depot owners have not adjusted their ex-depot prices, keeping pump prices high at ₦915 and above. The latest landing cost remains about ₦37 per litre cheaper than the Dangote Refinery’s ex-depot price of ₦877 per litre.

Dangote Refinery had recently increased its gantry price from ₦820 to ₦877 per litre without prior notice, dashing expectations that prices would drop to the ₦841 per litre earlier promised during the launch of its CNG-powered trucks.

Currently, major marketers such as Mobil sell petrol at ₦915 per litre, while NNPC retail outlets dispense at ₦928. Dangote’s partners, including Heyden and MRS, also maintain prices above ₦920, reflecting the refinery’s new pricing structure.

Marketers Raise Concern

Independent marketers have criticised the situation, arguing that imported petrol should not cost less than locally refined fuel.

Since the Dangote Refinery began production in September 2024, its frequent price adjustments have unsettled importers, who accuse the refinery of trying to dominate the downstream market.

A source at the refinery confirmed to Punch that some marketers have petitioned regulators, alleging that Dangote was “dictating” market prices.

The Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) also accused the refinery of causing “price shocks” that destabilise the market.

DAPPMAN’s Executive Secretary, Olufemi Adewole, said, “Presenting Dangote’s price cuts as patriotic ignores their timing and impact—they coincided with cargo arrivals, creating market disruptions that affected importers and even Dangote’s own customers.”

He added that Nigeria’s downstream sector cannot rely on a single refinery, noting that Dangote currently supplies only 30–35% of national demand, while the rest is met by independent marketers under regulatory oversight.

Why Prices Remain High Despite Lower Costs

Punch reports that the recent spike in pump prices—from around ₦865 to nearly ₦1,000 per litre in some areas—has puzzled observers, especially as crude oil prices and the naira exchange rate have both stabilised.

MEMAN’s data shows the naira has strengthened from about ₦1,700/$ earlier this year to ₦1,470/$, while Brent crude prices have dropped to around $61 per barrel, the lowest since May.

Despite these favourable indicators, depot owners and the Dangote Refinery raised their prices within the same period, worsening consumer hardship.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) blamed depot owners for the increase and accused Dangote of delaying product loading even after payments had been made weeks earlier.

Consequently, filling stations nationwide have adjusted their prices upward, with most outlets now selling petrol between ₦930 and ₦950 per litre.