Friday, May 2, 2025 — WafricNews

The cost of landing Premium Motor Spirit (PMS), commonly known as petrol, has surged to an average of N870 per litre — a development that is threatening the survival of petroleum importers and marketers in Nigeria. This is based on figures released by the Major Energies Marketers Association of Nigeria (MEMAN).

According to the latest data, petrol landed at N872 per litre on April 28 and slightly dropped to N868 the following day. By comparison, on April 23, the average cost was N859. These figures all hover well above the current ex-depot price of N835 set by the Dangote Petroleum Refinery, presenting a significant challenge for those importing fuel into the country.

The breakdown from several petroleum depots paints a concerning picture for the sector: First Fortune sold at N868, Sigmund at N875, Liquid Bulk at N870, Matrix (Warri) at N870, and NIPCO Lagos at N842. Depot prices vary depending on location, with Lagos stations recording slightly lower rates due to shorter transport routes. Buyers sourcing from South-South regions are paying more, with logistics adding to the cost burden.

Speaking with WafricNews, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, acknowledged that fluctuating prices have slowed down business activities across the sector.

“The inconsistency in pricing has led to arbitrary shifts that are not being effectively managed by market mechanisms,” Gillis-Harry said. Despite this, he emphasized PETROAN’s continued commitment to providing access to fuel for Nigerians.

“No matter how difficult the environment gets, we are committed to doing business and supporting Nigeria’s economic engine. That’s our covenant with the people,” he added.

Meanwhile, in Ogun State, fuel price variations continue across major routes. SGR filling stations along the Sagamu-Benin and Lagos-Ibadan expressways have reduced pump prices to N855 per litre — undercutting rates from Dangote's distributors. Other outlets, such as MRS and Heyden, were seen selling at N890 and N885 respectively as of Thursday.

This pricing tug-of-war traces back to the Federal Government's naira-for-crude agreement with the Dangote refinery. While the deal was temporarily suspended in March — triggering a price hike to as much as N950 per litre — its subsequent reinstatement led Dangote to slash rates below N900.

However, not everyone is benefiting. Several fuel importers and PETROAN members voiced concerns to WafricNews, saying that they are now forced to sell below their cost price just to remain afloat.

In a broader market analysis, a report by S&P Global highlighted that the Dangote refinery’s pricing strategy has indirectly incentivized foreign fuel shipments into Nigeria. According to the report, Dangote’s gantry prices haven’t fallen in line with the global drop in oil prices, making imports temporarily more attractive.

Between April 1 and 9, international benchmark Eurobob M1 saw a 17.9% decline — from $734.25/MT to $603/MT. Yet, during this same period, Dangote’s truck gantry price only dropped from N880 to N865, and later to N835 — a marginal 1.7% reduction.

“This mismatch between global and local price shifts has encouraged a fresh wave of fuel imports into West Africa, where high local prices remain profitable for international traders,” the report concluded.

As fuel dynamics continue to evolve, industry players are calling for better regulatory coordination to stabilize the sector — especially as the Dangote refinery becomes an increasingly dominant force in Nigeria’s energy market.


By WafricNews Desk.