Dangote Refinery Faces Competition as Marketers Import Cheaper PMS

Kehinde Fajobi

Oil marketers have reported a significant reduction in the landing cost of Premium Motor Spirit (PMS), now at ₦922.65 per litre, as of Friday.

This figure represents a ₦32.35 difference from the ₦955 per litre charged at Dangote Petroleum Refinery’s loading gantry.

The drop in costs includes shipping, import duties, and exchange rates, making imported petrol cheaper than Dangote’s refined product.

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

This development follows the Dangote Petroleum Refinery’s announcement last Sunday that higher petrol prices were due to rising crude oil costs.

However, despite the reduced landing costs, petrol retail prices remain high, ranging from ₦990 to ₦1,010 per litre in Abuja.

According to the Major Oil Marketers Association of Nigeria’s report on Friday, import parity costs into tanks fell to ₦922.65 per litre from ₦943.75 the previous day.

Brent crude oil was benchmarked at $78.29 per barrel, with an exchange rate of ₦1,550 per dollar.

Depot operators have also adjusted their prices, with notable reductions. Nipco, Aiteo, and Sahara depots now sell between ₦960 and ₦970 per litre, while Bulk Strategic Depot in Port Harcourt lowered prices from ₦1,005 to ₦981.

Meanwhile, findings revealed that oil marketers imported 76.84 million litres of PMS in just two days, between January 21 and 22, 2025.

Data from the Nigerian Ports Authority shows that vessels carrying 57,301 metric tonnes of fuel docked at Apapa and Tincan ports in Lagos.

However, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, expressed surprise at the imports, stating, “The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was supposed to stop the issuance of import licences for 180 days to allow Dangote to prove its production capacity.”

He added, “I am surprised to hear this because there was an industry stakeholder forum that agreed on no importation during this period.”

Contrarily, Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, clarified, “There was no agreement like that, but it was a mutual understanding not to import. At the time, Dangote products were cheaper than imported ones.”

The updated costs suggest improved profitability for importers, but exchange rate fluctuations and freight costs continue to affect Nigeria’s energy market dynamics.

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