Data obtained by the Major Energies Marketers Association of Nigeria (MOMAN) yesterday indicated that the landing cost of a litre of imported petrol increased by ₦88 in one week.
The association confirmed the rise in the landing cost in its daily energy bulletin released yesterday, arguing that price changes are inevitable in a deregulated market.
The increase was from ₦797 per litre last week hitting ₦885 per litre this week. This is an increase of N88 for each litre of petrol imported into the country, reports Channels TV.
The new landing cost is ₦25 higher than the ₦860 that end-user customers pay for Dangote petrol from MRS and other partners.
Similarly, the Dangote refinery’s ex-depot petrol price is ₦815 per litre, ₦70 lower than the new landing cost.
In the past few weeks, the pump price of petrol fell to an average of N860 per litre from about ₦1,000 in January as a result of price cuts by the Dangote refinery.
The landing cost fell from about N927 below Dangote’s ex-depot price, forcing the refinery to react with a price cut.
The development resulted in the loss of billions of naira by marketers as they were made to sell petrol below their costs.
However, the market expects a rise in petrol prices in the coming weeks as a result of the disagreement between the Dangote refinery and the Nigerian National Petroleum Company Limited over the naira-for-crude deal and the rise in the landing cost.
While announcing the suspension of naira fuel sales last week, the Dangote Group said, “Dear valued customers, we wish to inform you that the Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.
“To date, our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.”
Immediately after the announcement, the cost of loading petrol at private depots in Lagos jumped to about ₦900/litre. It was less than ₦850/litre before the announcement.
Product importation has also increased.
According to a document obtained from the Nigerian Port Authority, seven vessels carrying imported Premium Motor Spirit were expected to berth at seaports along the nation’s borders between March 17 and 23.
These vessels, carrying 115,000 metric tonnes, representing 154.22 million litres of PMS, were to bring in products through three seaports to improve fuel supply nationwide.
An analysis of the document from NPA showed that the commodities landed at the Tincan port in Lagos, the Lekki Deep Seaport in Lagos, and the Calabar Port in Cross River State.
The document also revealed that the Dangote Refinery imported 654,766 metric tonnes of crude oil within the same period.
In a statement, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria, Olufemi Adewole, said, “The naira-for-crude oil transaction framework presents significant risks that could affect Nigeria’s foreign exchange stability and deter foreign direct investment.”
Adewole highlighted concerns over the volatility of the naira, emphasising that crude oil transactions are traditionally carried out in US dollars due to its stability and global acceptability.
On Tuesday, the Petroleum Products Retail Outlets Owners Association of Nigeria urged the Federal Government not to allow the Dangote refinery to sell petroleum products in dollars to Nigerian marketers.
PETROAN National President Billy Gillis-Harry said the announcement created tension among marketers who now panic-buy petrol over fear of possible scarcity or price surge.
According to him, allowing the sale of fuel in dollars will hurt the economy, bringing undue pressure and it will worsen inflationary pressure.
He said, “We urge the government to ensure that all transactions within the country are conducted in the local currency, the naira, to protect the economy and the welfare of Nigerians.
“PETROAN opposes the sale of petroleum products or any other products within Nigeria in dollars. We believe that such a practice would have an adverse impact on the economy, bringing undue pressure on foreign currency and exacerbating Nigeria’s already challenging inflationary situation.”
On its part, MOMAN said those accustomed to price control in the downstream sector are resisting the changes occasioned by deregulation.
MEMAN stated this at its Q1 2025 Press Training & Engagement held in Lagos on Wednesday, bringing together industry experts to provide insights into the evolving energy sector.
According to a communique signed by MEMAN’s Chief Executive Officer, Clement Isong, the association affirmed that the implementation of the Petroleum Industry Act remains firmly on track.
The association said that debates should be encouraged as part of the natural evolution of a market-driven energy sector.
It added that the transition from a state-controlled system to a competitive, deregulated market is essential for fostering efficiency, transparency, and long-term economic growth.
“However, this transition requires patience, adaptation, and trust. As the market stabilises, challenges will arise, and resistance from those accustomed to price control is inevitable. But with robust regulation, industry collaboration, and public transparency, Nigeria can fully realise the benefits of this transformation,” the communique partly read.
MEMAN added that a well-functioning, deregulated market will attract more investment, improve efficiency, and create a more competitive landscape that benefits both businesses and consumers.
It said “As key industry stakeholders, MEMAN strongly supports the role of regulatory agencies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Federal Competition and Consumer Protection Commission in ensuring a fair, competitive, and well-regulated marketplace.
“It is imperative that their efforts remain focused on market stability, consumer protection, and building public confidence in the reform process.”
