In a bold move aimed at driving down fuel costs, oil marketers in Nigeria have announced plans to import Premium Motor Spirit (PMS) to sell at rates below those of the Dangote Petroleum Refinery and the Nigerian National Petroleum Company Limited (NNPCL).
This decision comes as reports revealed that Dangote’s petrol prices have soared to between N1,015 and N1,028 per liter, making imported petrol a more affordable option for both major and independent marketers.
Data released by the Major Energies Marketers Association of Nigeria indicated a landing cost of N978.01 per liter for imported petrol as of October 31, 2024, with diesel and aviation fuel landing costs at N1,069.97 and N1,119.67 per liter, respectively.
Despite several requests, the Dangote Refinery has yet to publicly announce its pricing structure, with sources citing it as higher than imported fuel costs.
A prominent marketer, speaking anonymously due to a lack of authorization, confirmed that the Dangote refinery currently sells petrol to bulk buyers at N1,015 per liter and to smaller buyers at N1,028 per liter.
With three recent fuel-laden cargoes discharged at Nigerian ports, this has spurred petroleum retailers to take action. The Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) has expressed its intent to provide fuel at prices significantly lower than Dangote’s.
PETROAN Publicity Secretary, Dr. Joseph Obele, disclosed that the association had secured favorable deals with international fuel suppliers to import petrol at a projected landing price close to N800 per liter.
"We have applied for the necessary licenses and are hopeful that regulatory bodies will grant us the authority to import soon,” Obele stated, adding that PETROAN aims to offer Nigerians a better value than the N1,040 per liter currently charged by NNPCL.
Obele further highlighted that Dangote’s higher prices might be due to the refinery processing older crude oil stocks bought at a premium.
This crude, reportedly purchased at around $80 per barrel, has not yet been offset by recent price drops in the international market. Until the refinery begins refining crude obtained at lower prices, a downward adjustment in Dangote’s petrol price remains unlikely.
Meanwhile, Yakubu Suleiman, National Assistant Secretary of the Independent Petroleum Marketers Association of Nigeria, also weighed in, asserting that Dangote’s fuel prices, currently around N995 per liter, remain higher than those of imported products.
Suleiman raised concerns about limited collaboration between Dangote and independent marketers, which he said has hindered access to the refinery’s petrol supply.
Responding to these reports, Tony Chiejina, Chief Corporate Communications Officer for the Dangote Group, dismissed the figures as “fake news” without disclosing actual prices, further deepening questions around the refinery's pricing policies.
As the debate over petrol pricing escalates, oil marketers are pressing for transparency and affordable alternatives for Nigerian consumers.
The industry's next steps hinge on regulatory approvals, as PETROAN and other associations push for import licenses to bring competitively priced fuel to the Nigerian market.
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